Tech billionaire Larry Ellison has stepped in with a massive $40.4 billion personal guarantee to shore up Paramount’s hostile takeover bid for Warner Bros. Discovery, escalating a high-stakes battle for control of Hollywood’s most iconic assets.
The move by the Oracle co-founder, revealed in a regulatory filing on Monday, is a direct attempt to neutralize financial concerns raised by the Warner Bros. Discovery (WBD) board, which had previously advised shareholders to reject Paramount’s offer in favor of a rival deal with Netflix.
”Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount,” the company stated in its updated filing.
The $108.4 billion all-cash bid, led by Ellison’s son, Paramount CEO David Ellison, remains at $30 per share. By providing a personal “backstop,” the elder Ellison aims to prove that Paramount has the “financial muscle” to complete the acquisition—a point of contention that WBD directors used to justify their preference for Netflix’s $82.7 billion studio-only proposal.
”Paramount has repeatedly demonstrated its commitment to acquiring WBD,” David Ellison said in a statement accompanying the revised terms. He added that the offer remains the “superior option to maximize value for WBD shareholders.”
The revised bid also includes a significant increase in the regulatory “breakup fee” to $5.8 billion, matching the fee offered by Netflix. This fee would be paid to WBD if the deal is blocked by government antitrust regulators.
The battle for WBD has become the centerpiece of a broader “streaming war,” with the winner poised to control a vast library of content ranging from HBO and CNN to the historic Warner Bros. film studios.
Market analysts suggest the personal intervention of Larry Ellison, whose net worth is estimated at nearly $243 billion, significantly tilts the scales. “I doubt many Warner Bros. shareholders that are on the fence… were holding out due to issues other than the funding front,” noted Seth Shafer, principal analyst at S&P Global Market Intelligence.
The takeover attempt has also drawn political scrutiny. President-elect Donald Trump recently signaled he would be “involved” in any regulatory decision regarding the merger, specifically citing concerns over the market share of Netflix and the future of CNN.
Shares of Warner Bros. Discovery rose 3.2 percent following the announcement, while Paramount-Skydance shares jumped nearly 8 percent in Monday trading.
WBD shareholders now have until January 21, 2026, to decide on the offer.
Reported by ANN via Yahoo News
