Oracle founder Larry Ellison has stepped in with a $40.4 billion personal guarantee to strengthen Paramount’s hostile bid for Warner Bros. Discovery (WBD), intensifying a high-stakes takeover battle with streaming giant Netflix.
The guarantee was disclosed on Monday as part of an amended proposal from Paramount Skydance, led by David Ellison, Larry Ellison’s son. The revised offer values Warner Bros. Discovery at about $108 billion and is aimed at addressing concerns raised by the WBD board over the credibility and financing structure of Paramount’s initial bid.
Earlier this month, Netflix stunned the entertainment industry after announcing an agreement to acquire Warner Bros. Discovery’s film and television studios, along with the HBO Max streaming business, in a deal valued at nearly $83 billion. The move marked what would be the largest media consolidation in a decade.
Just three days later, Paramount countered with an all-cash tender offer valuing WBD at $108.4 billion. However, Warner Bros. Discovery last week described that offer as risky, arguing that it relied on an “unknown and opaque revocable trust” and lacked a clear financial commitment from the Ellison family.
WBD also expressed concern over the deal’s reliance on foreign capital, noting that about $24 billion of the financing would come from Middle Eastern sovereign wealth funds, a factor that could trigger additional regulatory scrutiny.
Paramount’s revised proposal seeks to calm those fears. In addition to Larry Ellison’s personal guarantee, the company increased its breakup fee to $5.8 billion, matching Netflix’s offer. The fee would be payable to Warner Bros. Discovery if regulatory approval is not secured.
“Paramount has repeatedly demonstrated its commitment to acquiring WBD,” David Ellison said. “Our $30-per-share, fully financed all-cash offer continues to represent the best value for WBD shareholders.”
Unlike Netflix’s bid, Paramount’s proposal includes the acquisition of Warner Bros. Discovery’s cable television networks, such as CNN, TNT, TBS and Discovery. These assets would be merged with Paramount’s existing portfolio, which includes CBS, MTV and Comedy Central.
The takeover contest has also attracted political attention. President Donald Trump has publicly questioned the Netflix deal, warning that it could give the streaming company excessive control over the film and television market. He has also repeatedly criticised CNN and stressed the need for new ownership of the network as part of any Warner Bros. sale.
Despite his criticism of Paramount-owned CBS News, Trump has indicated that neither bidder has his explicit backing.
Both Netflix and Paramount have reportedly engaged the White House directly as they push their respective bids. Since assuming control of Paramount earlier this year, the company has made several editorial changes at CBS News, including appointing journalist Bari Weiss as editor-in-chief.
Weiss, known for her criticism of perceived bias in mainstream media, has drawn both praise and controversy. On Monday, a CBS News staff member accused her of cancelling a planned report on a maximum-security prison in El Salvador where the Trump administration deported hundreds of Venezuelan migrants.
As regulatory reviews and shareholder deliberations continue, the outcome of the bidding war is expected to significantly reshape Hollywood and the wider US media landscape.
Larry Ellison Offers $40.4bn Personal Guarantee as Paramount Escalates Warner Bros. Discovery Takeover Battle
