Interesting to note that WBD and Paramount both suffered significant losses recently. The Paramount acquisition of WBD is problematic, simply because there seems to be nefarious intent by the Ellison family to monopolise the media, with speculations rife that the news segment (CNN) is the biggest target.
Worryingly, the news landscape in the united states seems to be targeted to sowing tensions and mistrust among their citizens. Fox news ironically claimed they are entertaining viewers (and not doing factual reporting) when taken to court for making false claims about voting machines in usa elections. All the misinformation seeks to achieve is to further polarise the sentiments between the two ends of their political spectrum.
We need to realise that while it seems like a united states problem, all these will circle back to have global impact. The media scene in their country is what pushed Trunp back into the white house, allowing him to enact antagonistic policies like global tariffs, and crackdown on citizens internally (among many other borderline criminal activities to enrich himself while in office).
Worth keeping in mind is that these mergers and acquisitions while needing huge amounts of capitals, are off the backs of wealthy individuals who do not truly liquidate their assets and instead take loans against their assets from institutions. In Larry Ellison's case, he has a huge hole burning in his Oracle pocket, being over-leveraged before even starting to build up their AI infrastructure for projects on hand. He constantly tries to ingratiate himself with the us president to obtain benefits like a slice of tiktok. Now he is funding his son's acquisition of WBD, truly proving that greed knows no bounds.
If Larry puts his Oracle holdings as collateral for loans to fund the WBD M&A, financial institutions would do well to consider the prospect of the AI bubble bursting, leaving them with waste paper. The private investors would once again be holding the proverbial bomb when Oracle goes under, and taxpayers would be on the hook to bail out (expecting trump to bail out his buddy, with no care for how it plays out) another egoistic rich old man who tried getting his claws on any and everything possible knowing there are no consequences.
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