Key Takeaways
- • California filings show Larry Ellison pledged shares of Tesla, SpaceX and Paramount Skydance as loan collateral to help finance David Ellison's roughly $110bn takeover of Warner Bros. Discovery.
- • The Warner Bros. Discovery acquisition closed on October 6.
- • Citigroup, JPMorgan, HSBC, UBS and BNP Paribas are among the banks now holding the pledged securities.
Summary
California filings show that Larry Ellison pledged shares of Tesla, SpaceX and Paramount Skydance as loan collateral to support the financing of David Ellison's takeover of Warner Bros. Discovery. The transaction, valued at roughly $110bn, closed on October 6.
According to the filings, the banks that now hold the pledged securities include Citigroup, JPMorgan, HSBC, UBS and BNP Paribas. The arrangement shows how large personal equity holdings of a founder-shareholder were used to back acquisition debt, a structure of interest to lenders, family offices and other alternative-investment participants monitoring collateralized financing in major media transactions.
According to the filings, the banks that now hold the pledged securities include Citigroup, JPMorgan, HSBC, UBS and BNP Paribas. The arrangement shows how large personal equity holdings of a founder-shareholder were used to back acquisition debt, a structure of interest to lenders, family offices and other alternative-investment participants monitoring collateralized financing in major media transactions.
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