Paramount Ups Ante for Warner Bros. with $40.4B Personal Guarantee from Oracle’s Larry Ellison

The battle for Warner Bros. Discovery has escalated dramatically, as Paramount Skydance announced Monday an amended all-cash offer backed by an extraordinary financial commitment: an “irrevocable personal guarantee” from Oracle billionaire Larry Ellison.

In a direct move to counter concerns that derailed its previous bid, Larry Ellison has agreed to personally guarantee $40.4 billion in equity financing for the deal. This new provision, detailed in a Paramount press release, is designed to pry the legacy studio away from a competing deal with streaming giant Netflix. WBD's board had rejected Paramount's initial offer just last week, calling it “illusory” and citing doubts about its financing.

At the time of the rejection, the WBD board noted the Netflix deal was “a binding agreement with enforceable commitments, with no need for any equity financing and robust debt commitments.”

The conflict began on December 5th, when Netflix announced a cash-and-stock deal to acquire WBD, valued at $27.75 per share with a total enterprise value of $82.7 billion. Just three days later, Paramount, led by Ellison’s son David Ellison, launched a hostile bid valued at $108.4 billion, offering $30 per share. Now, Paramount's amended offer aims to erase any doubt about its financial firepower.

“Our $30 per share, fully financed all-cash offer was on December 4th, and continues to be, the superior option to maximize value for WBD shareholders,” said Paramount Skydance CEO David Ellison in the release. He argued that Paramount's acquisition would be “superior for all WBD stakeholders” by acting as a “catalyst for greater content production, greater theatrical output, and more consumer choice.”