Bloomberg Tech Podcast Summary

Episode: Larry Ellison Guarantees Paramount’s Bid for WBD
Date: December 22, 2025
Hosts: Caroline Hyde (New York), Tom Giles (San Francisco)

Overview

This episode of Bloomberg Tech centers on a potential transformation in the media industry as Paramount Skydance amends its bid for Warner Brothers Discovery (WBD), now featuring a personal financial guarantee from Oracle Chairman Larry Ellison. The hosts and guests break down the implications of this development for Hollywood, stakeholders, and competing suitors like Netflix, while also covering major technology headlines including Alphabet’s push into clean energy, the surge of Chinese chip IPOs, regulatory moves around advanced AI in New York, and the broader impacts of AI on content creation and business innovation.

Key Discussion Points & Insights

1. Paramount Skydance’s Amended Bid for Warner Brothers Discovery

• Personal Guarantee from Larry Ellison

  • Paramount Skydance, backed by David Ellison (Larry Ellison’s son), amends its offer for WBD. The revised bid assures stakeholders by including a personal guarantee from Larry Ellison, ensuring the $40 billion in equity is secure ([02:27], [05:06], [29:39]).
  • “We're going to give personal guarantee from Larry Ellison … to ensure that the money, the $40 billion of equity there that they'd be doing to help purchase Warner Brothers Discovery is intact.” — Caroline Hyde, [03:44]

• Nature of the Amendments

  • The changes address Warner Brothers’ concerns regarding deal structure, especially the security of financing, with previous issues centering on reliance on a revocable trust.
  • "One of the issues was this was being backed by a revocable trust. What if he revoked it?" — Tom Giles, [05:06]
  • The offer extends the tender date and adjusts interim operating terms, but does not increase the purchase price ([05:06], [30:48]).
  • The uncertainty of the cable networks’ valuation remains a point of negotiation.

• Deal Dynamics and Competitive Bidding

  • Netflix remains in the running, with Paramount/Skydance trying to sweeten their offer.
  • "If Warner Brothers did decide to not go with Netflix and go with another suitor, they would have to pay Netflix $2.8 billion and somebody's going to have to pay that." — Tom Giles, [05:06]
  • Netflix's offer presumes spinning off WBD’s cable networks, while Paramount includes them, making valuation complex.
  • "Value is in the eye of the beholder." — John Klein, Hang Media ([08:38]), suggesting other media players may value the cable assets more.

• Role of Key Players

  • David Zaslav (WBD CEO) is seen as holding leverage, able to play suitors off each other for a better deal ([07:58]).
  • Larry Ellison’s unprecedented personal involvement boosts deal credibility ([29:39]).
  • Political and regulatory dimensions, including relationships with the Trump administration, may impact the outcome ([10:54]).

2. Broader Implications for Hollywood and Content Creation

• Industry Transformation
  • These mega-deals are fundamentally about traditional media assets, whereas the “real” winners may be new digital platforms like YouTube, which recently secured Oscar streaming rights ([13:04]).
  • "The big winner here is YouTube, because nobody's keeping their eye on that." — John Klein, [13:04]
  • A content creation explosion is underway, but technology giants may ultimately overshadow legacy media ([13:04]).
• Creator Economy vs. Studios
  • Rising creators on platforms like TikTok and YouTube are commanding more audience attention, reshaping the industry.

3. Alphabet’s Acquisition of Intersect Power

• Energy & Data Center Infrastructure
  • Alphabet (Google’s parent) is acquiring Intersect Power for $4.75 billion to vertically integrate clean energy generation near its data centers ([02:27], [18:08]).
  • "Tech companies want to move really fast. They want to get a ton of power... we're just going to bring a whole, a whole power generation company. We're going to bring that in house." — Josh, Bloomberg, [18:38]
  • Moves like this are seen across tech giants, aiming to meet AI-driven energy demands and reduce grid dependency.

4. Chinese Chip Makers & Geopolitical Context

• IPO Rush & Strategic Importance

  • Chinese chip firms are rushing to IPO, incentivized by a $70B government package and hopes to become “national champions,” yet they face ongoing technology and yield challenges ([21:24]).
  • "The push for domestic chip companies is alive ... but the questions come in when you look at the technological challenges." — Maggie Eastland, Bloomberg, [22:31]

• Nvidia’s Export Dynamics to China

  • Restrictions on advanced chips affect competitive dynamics between US and China ([24:46]).

5. TikTok/ByteDance—Algorithm Control Debate

• National Security Dispute

  • US continues to negotiate with ByteDance over TikTok, focusing on whether algorithmic control will remain in Beijing ([25:21]).
  • Liza Tobin: "Beijing has never agreed to turn over control of this algorithm over to these U.S. investors. And that's really at the heart of the deal." ([25:21])

• Implications for US Media Independence

  • Maintaining ByteDance/Beijing’s control over the TikTok algorithm is being likened to foreign control of major US news outlets—a serious national security concern ([27:02]).

6. Regulatory Moves Around AI—New York & National Landscape

• New York’s Frontier AI Restrictions

  • New York passes the “Reader Act,” targeting foundational AI models (like GPT-4, Gemini), mandating oversight and risk reporting ([35:48]).
  • "The state Financial Services department will now be able to say, we want advanced reporting on these risks that these models pose." — Miles Miller, [36:16]
  • The law includes million-dollar fines for violations, and is seen as part of a patchwork of AI regulation emerging across states ([36:16], [37:29]).

• Industry Pushback & Federal Prospects

  • Tech industry lobbied to water down state bills and awaits simpler federal laws.
  • "One of the dynamics around regulation is ... the largest companies actually benefit. ... We'd like to see very simple regulations at an extremely high level with a single regulatory body." — Tomas Tunguz, Theory Ventures, [41:39]

7. AI’s Reshaping of Intellectual Property and Content Licenses

• Content & IP in the Age of Generative AI
  • The intersection of media IP and AI is highlighted by Disney and WBD's legal action against Chinese AI company MiniMax for IP infringement ([32:00]).
  • "IP has to change. Technology rarely moves backwards … the challenge for content holders is to figure out how to work with it, use it, manage it, and take advantage of it." — Robin Feldman, UC Law SF, [35:48]

8. Macro Tech Market Trends & Risks

• Market Momentum & Risks Ahead
  • NASDAQ 100 has soared (>20% YTD), primarily on big tech and semiconductor strength ([02:27], [48:24], [49:46]).
  • Concerns remain about future demand for data center infrastructure, debt funding (especially for Oracle), and potential over-exuberance in the markets ([39:14], [49:46]).
  • "The worry is that what worked in 25 may not work in 26 ... it's probably worth looking at [software] specifically." — Ted Mortenston, Bed, [51:26]

Notable Quotes & Memorable Moments

• "Don't count out the Ellison's. They're incredibly smart and aggressive ... I think the likelihood here is that Warner Brothers ends up with Paramount."
  — Kevin Mayer (replay from prior episode), [07:13]
• "It sort of reminds one of the snake that eats the deer. It unhinges its jaw and it spends the next three months just trying to move that thing down the tunnel."
  — John Klein, on how slow synergies may play out post-acquisition, [09:57]
• "The big winner here is YouTube, because nobody's keeping their eye on that. ... All those tech giants are going to be running media..."
  — John Klein, [13:04]
• "Beijing, through ByteDance, maintains control over this algorithm and this vector of influence over American discourse..."
  — Liza Tobin, Garno Global, [25:53]
• "IP has to change. Technology rarely moves backwards."
  — Robin Feldman, UC Law SF, [35:48]
• "Regulation is the idea of regulatory capture where the largest companies actually benefit ... We'd like to see very simple regulations at a high level."
  — Tomas Tunguz, Theory Ventures, [41:39]
• "These companies are growing at rates that we've never seen. 0 to 100 million in run rate in a year that is still rare, but was unthinkable maybe five years ago..."
  — Tomas Tunguz, [42:56]
• "The overall ... infrastructure is not going to change. The spend is still robust but in reality, you have the stocks up 42% ... The worry is that what worked in 25 may not work in 26."
  — Ted Mortenston, [51:26]

Timestamps for Key Segments

• Amended Warner Brothers Discovery Bid / Larry Ellison’s Guarantee: [02:27]–[13:04], [29:39]–[32:50]
• Media Industry Take & Cable Network Valuations: [05:06]–[09:57]
• Alphabet’s Clean Energy Acquisition (Intersect Power): [18:08]–[21:24]
• Chinese Chip IPO Surge & Geopolitics: [21:24]–[24:46]
• TikTok/ByteDance Algorithm Control & National Security: [24:48]–[27:52]
• AI Regulation (New York & National): [35:48]–[38:41], [41:28]–[42:17]
• AI, IP, and Content Creation: [32:00]–[35:48]
• Macro Tech & Data Center Market Trends: [39:14]–[44:08]
• Stock Market & Sector Reflections: [48:24]–[53:20]

Episode Takeaways

• The Paramount Skydance-Warner Brothers Discovery saga exemplifies the new chessboard in media M&A, with legacy giants, tech billionaires, and streaming natives all vying for dominance.
• The foundational shifts in energy, AI infrastructure, and regulatory approaches signal tech’s continuing collision and convergence with every industry.
• Both AI-driven innovation and regulatory friction are accelerating, raising complex questions for investors, creators, and consumers.
• The true disruptors—creators and platforms like YouTube—may be transforming media far more fundamentally than headline mergers.
• Throughout, the recurring insight is that adaptability, capital backing (such as Larry Ellison's guarantee), and the ability to navigate both regulatory and technological upheaval will define tomorrow’s winners.