Oracle co-founder Larry Ellison has agreed to personally backstop a crucial portion of the financing behind Paramount Skydance’s hostile bid for Warner Bros Discovery (WBD), intensifying a high-stakes takeover battle that could reshape Hollywood’s streaming landscape.
Paramount said on Monday that Ellison has provided an “irrevocable personal guarantee” covering $40.4 billion of equity financing for its $108 billion all-cash offer for WBD.
The move is aimed at addressing concerns raised by Warner Bros Discovery’s board over the certainty of Paramount’s funding, which played a central role in WBD’s decision last week to recommend a rival deal with Netflix.
Ellison steps in to strengthen Paramount’s offer
The personal guarantee marks a significant shift in Paramount’s approach after WBD criticised the earlier structure of the bid.
Previously, the equity financing was backed by the Ellison family’s revocable trust, which WBD described as opaque and insufficiently secure.
Under the revised terms, Larry Ellison has agreed not only to guarantee the $40.4 billion equity portion but also not to revoke the Ellison family trust or transfer its assets during the pendency of the transaction.
Paramount has also published records confirming that the trust owns approximately 1.16 billion shares of Oracle common stock and that all material liabilities are publicly disclosed.
Paramount said the enhanced terms do not change the headline economics of the bid, which remains a $30-per-share all-cash offer for 100% of WBD’s outstanding shares, including its cable television assets.
The guarantee is designed to reassure shareholders that the financing is secure and to counter arguments made by WBD’s board that Paramount’s proposal was inferior in execution risk.
Competing bids heighten pressure on WBD shareholders
The takeover battle has intensified after Netflix agreed this month to acquire Warner Bros Discovery’s studio and streaming business for nearly $83 billion.
WBD has urged shareholders to back that transaction, arguing it offers greater certainty and excludes the company’s legacy cable assets.
Paramount, led by chairman and chief executive David Ellison, is seeking to derail that deal with its broader offer for the entire company.
To further align its proposal with Netflix’s terms, Paramount said it would raise its regulatory reverse termination fee to $5.8 billion from $5 billion and extend the expiration of its tender offer to January 21, 2026.
WBD shareholders have delivered mixed signals.
While the board formally rejected Paramount’s bid on December 17, some investors, including Harris Associates, WBD’s fifth-largest shareholder, have indicated openness to a revised proposal that improves deal certainty.
Warner Bros Discovery shares rose around 2.5% in premarket trading following the announcement, while Paramount Skydance shares also gained.
A pivotal moment in the streaming wars
The outcome of the bidding war is widely seen as pivotal for the future of the global streaming industry.
Control of Warner Bros Discovery would give the winner access to a vast library of film, television, and gaming assets, strengthening its competitive position against rivals.
Larry Ellison, whose net worth is estimated at nearly $243 billion, has played a central role in backing Skydance Media’s expansion, including its $8 billion takeover of Paramount Global, which closed in August.
His decision to provide a personal guarantee underscores the strategic importance of the WBD acquisition.
David Ellison said Paramount’s offer remains “the superior option to maximize value for WBD shareholders” and argued that the deal would act as a catalyst for increased content production and theatrical output.
For Paramount’s hostile bid to succeed, WBD’s board and shareholders would need to approve it, unless Paramount secures at least 90% of outstanding shares through the tender offer.
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