Oracle co-founder Larry Ellison, one of the world’s wealthiest individuals, has stepped forward with an irrevocable personal guarantee of $40.4 billion to bolster Paramount Skydance’s hostile takeover bid for Warner Bros. Discovery.
This move comes as Paramount seeks to outmaneuver Netflix’s agreed-upon deal for key WBD assets, turning a corporate showdown into a high-stakes family affair.
Shareholders of Warner Bros. Discovery woke up to a pleasant surprise, with shares jumping nearly 4% in premarket trading on the news of Ellison’s guarantee. The strengthened bid neutralizes previous doubts about financing certainty, potentially pressuring WBD’s board to reconsider its preference for Netflix’s narrower, $82.7 billion offer.
Meanwhile, Paramount’s stock gained about 3%, signaling investor confidence in the Ellison-backed push. This escalation could prolong the battle, delaying closures and keeping Hollywood on edge about who ultimately controls iconic assets like HBO and the Warner studios.
Paramount Skydance announced the amendment Monday morning, directly addressing Warner Bros. Discovery’s recent accusations that its $108.4 billion all-cash offer lacked a solid financial backstop.
Larry Ellison, father of Paramount CEO David Ellison, agreed to personally guarantee $40.4 billion in equity financing—roughly a sixth of his estimated $243 billion net worth.
WBD’s board had dismissed the prior proposal as risky, pointing to reliance on a revocable family trust rather than firm commitments.
Now, with this personal pledge, Paramount argues its $30-per-share offer for the entire company stands superior. Netflix’s deal targets only the studios, HBO, and HBO Max, leaving cable networks like CNN and Discovery behind.
Paramount wants it all, including Cartoon Network and those reality shows that somehow keep drawing viewers. David Ellison emphasized the bid’s advantages in a statement, calling it fully financed and a catalyst for more content and theatrical releases.
He noted greater consumer choice under their vision, though one wonders if that includes more sequels nobody asked for. The younger Ellison highlighted commitment to growth, positioning the acquisition as preserving Hollywood’s treasures.
WBD, however, deemed the full-company bid inadequate with significant risks.
Paramount countered by matching Netflix’s $5.8 billion reverse termination fee and extending its tender offer. It also offered more operational flexibility for WBD during the process. Ellison promised not to revoke the family trust or shift its assets unfavorably.
Records show the trust holds over a billion Oracle shares, providing ample backing. This guarantee arrives after WBD urged shareholders to reject Paramount’s approach last week. The board favored Netflix for perceived lower execution risks.
Paramount bluntly denied Netflix’s offer as superior, tackling what it called WBD’s vague need for flexibility. Investors now watch closely, as the personal touch from a tech titan adds undeniable weight. One can’t help noting the convenience of having a billionaire parent ready to sign such sums.
Yet in corporate battles this size, such deep pockets prove rather handy. The fight continues, with shareholders holding the remote on Hollywood’s next blockbuster merger.
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