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Paramount Skydance has moved to strengthen its hostile takeover bid for Warner Bros. Discovery by securing an irrevocable personal guarantee of $40.4 billion from billionaire tech executive Larry Ellison, the company said Monday.
The guarantee is intended to address concerns raised by the Warner Bros. Discovery board about the certainty of financing behind Paramount's $108 billion all-cash offer. Paramount is seeking to derail Warner Bros. Discovery's previously announced deal with Netflix, which values select studio and streaming assets at approximately $83 billion.
According to Paramount, Ellison's commitment covers a significant portion of the equity financing for the proposed acquisition, as well as any potential damages claims tied to the transaction. Ellison has also agreed not to revoke or materially alter the Ellison family trust while the deal remains pending, offering additional assurance to shareholders weighing the competing bids.
Paramount, led by CEO David Ellison, reiterated that it continues to offer $30 per share in cash for all outstanding Warner Bros. Discovery shares. The company did not raise its bid but increased its regulatory reverse termination fee to $5.8 billion, matching the breakup fee attached to Netflix's agreement.
The revised offer is backed by a consortium of investors, including RedBird Capital Partners and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. To ease potential national security concerns, Paramount disclosed that the foreign funds agreed to hold non-voting equity stakes and forgo any governance rights, including board representation.
Warner Bros. Discovery's board rejected Paramount's earlier proposal last week, arguing that the financing lacked a concrete personal commitment from Larry Ellison. Paramount contends the concern was raised late in the process and says the amended offer directly resolves the issue.
RedBird founder Gerry Cardinale said the updated bid improves transparency and certainty for shareholders, emphasizing that Ellison's backing is anchored by a substantial Oracle stock position held within the family trust.
If Paramount's bid is to succeed, it must either win approval from Warner Bros. Discovery's board or secure support from at least 90% of the company's shareholders through a tender offer. Paramount has extended the deadline for shareholders to tender their shares until January 21, 2026.
