Oracle's Ellison leans on banks to save daughter's Oscar-winning film company
Larry Ellison has come to the aid of his daughter, Megan Ellison, and the financially struggling production company she founded in 2011, Annapurna Pictures.
Ellison senior, entrepreneur and co-founder of software giant Oracle, a company with a valuation of nearly $60 Billion, has reportedly used his influence with lenders to bail out Annapurna by submitting a "last and final offer" of about $200 Million according to Deadline.com.
The payoff is a deal for Ellison who used his power and relationships with the banks to leverage a settlement at about 80 cents on the dollar according to the report. Credit companies, including larger banks as well as smaller lenders, secured the $350 Million loan in the fall of 2017.
"Larry loves his kids, indulges them a little too much, and wants the best possible deal for himself," says Mike Wilson, the author of the book, "The Difference Between God and Larry Ellison." Wilson adds, "I guess Fitzgerald was wrong -- the rich aren't so different from you and me."
The move essentially saves the company of Ellison's only daughter from being forced into filing Chapter 11 bankruptcy protection. The lenders, which reportedly include JP Morgan and Wells Fargo, could take losses of one-fifth of what they loaned to the production house responsible for bringing audiences Oscar-nominated films like, “Zero Dark Thirty,” “Phantom Thread,” and “Vice.”
The banks involved in the loan to Annapurna, reportedly conduct enough business with the elder Ellison, who enjoys a net worth of $65 Billion according to Forbes, to offset their losses on this movie production deal.
“This is a function of the banks not having much of a choice, because of the relationship that they have with Larry Ellison. This is a relatively small amount for these major banks,“ Hal Vogel, author of Entertainment Industry Economics, explains.
“They wouldn't want to jeopardize the whole relationship with Oracle and Larry Ellison, which I am sure is longstanding. He kind of used his sway or influence and didn't want to see his daughter go through bankruptcy court,” Vogel concludes.
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Megan Ellison reassured her team that the company is healthy and stable Deadline reports. Annapurna just last week released, ‘Where’d You Go Bernadette,” starring Cate Blanchett, which earned in a disappointing $3.4 Million at the box office for its opening weekend, derailing any hopes for an infusion of cash from its latest production.
Fox Business News reached out to Annapurna Pictures for comment and is awaiting a reply.