Larry Ellison, one of the world’s richest men, has stepped in with a $40.4 billion personal guarantee to back Paramount Skydance’s $108 billion takeover bid for Warner Bros. Discovery. This escalates a tough battle with Netflix for control of some of Hollywood’s most valuable franchises.
Paramount Skydance, led by David Ellison, confirmed that Ellison would provide an “irrevocable personal guarantee” on the equity financing element of the offer as well as any claims for damages. The move is intended to address the concerns of Warner Bros. Discovery’s board, which last week urged shareholders to reject the offer, saying it was inadequately supported.
The board has instead recommended a competing $82.7 billion offer from Netflix for Warner’s studios and streaming assets. But Paramount insists its offer represents greater value, giving Warner shareholders $30 per share for the entire company, including its global television networks.
As part of the revised terms, Ellison has agreed not to revoke or materially modify the Ellison Family Trust during the transaction period. Paramount also said it would release records confirming that the trust holds about 1.16 billion shares of Oracle stock, worth about $223 billion as of Dec. 19, and a full disclosure of material liabilities.
The equity component of the Paramount offer totals $40.4 billion, including $11.8 billion from the Ellison family and $24 billion from sovereign wealth funds in Saudi Arabia, Qatar and Abu Dhabi. The remainder of the deal is secured by $54 billion in debt commitments from Bank of America, Citigroup and Apollo.
According to regulatory filings, Netflix also strengthened financing for its rival offering by refinancing part of a $59 billion bridge loan and securing new credit facilities.
Paramount has accused Warner’s board of failing to adequately engage with its proposal and hinted that its offer may be increased. The group took the unusual step of addressing shareholders directly, publishing a takeover offer on December 12th and extending its deadline to January 21st.
Acquiring Warner Bros. Discovery would give the successful bidder a portfolio that includes blockbuster franchises such as Harry Potter, Game of Thrones and DC Studios, as well as major networks such as CNN.
David Ellison said the deal would act as a “catalyst for greater content production, greater theatrical production and greater choice for consumers,” adding that Paramount’s proposal would preserve and strengthen “an iconic Hollywood treasure.”
Warner Bros. Discovery has not yet publicly responded to the revised financing guarantees, while Netflix declined to comment. As competition heats up, the outcome will reshape the global entertainment landscape and determine who controls some of the most powerful storytelling assets in modern media.
