Larry Ellison, one of the world’s richest men, has stepped in with a $40.4bn personal guarantee to shore up Paramount Skydance’s $108bn takeover bid for Warner Bros Discovery, escalating a high-stakes 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” covering the equity financing element of the bid, as well as any potential damages claims. The move is designed to address concerns from Warner Bros Discovery’s board, which last week urged shareholders to reject the offer, arguing it was inadequately backed.
The board has instead recommended a rival $82.7bn proposal from Netflix for Warner’s studios and streaming assets. Paramount, however, insists its bid represents superior value, offering Warner shareholders $30 per share for the entire business, including its global television networks.
As part of the revised terms, Ellison has agreed not to revoke or materially alter the Ellison family trust during the transaction period. Paramount also said it would publish records confirming that the trust holds around 1.16bn shares in Oracle, worth approximately $223bn as of December 19, alongside full disclosure of material liabilities.
The equity component of Paramount’s bid totals $40.4bn, including $11.8bn from the Ellison family and $24bn from sovereign wealth funds in Saudi Arabia, Qatar and Abu Dhabi. The remainder of the deal is backed by $54bn in debt commitments from Bank of America, Citigroup and Apollo.
Netflix has also strengthened the financing behind its competing offer, refinancing part of a $59bn bridge loan and securing new credit facilities, according to regulatory filings.
Paramount has accused Warner’s board of failing to properly engage with its proposal and signalled that its offer may yet increase. The group has taken the unusual step of appealing directly to shareholders, launching a tender offer on December 12 and extending its deadline to January 21.
The acquisition of Warner Bros Discovery would hand the successful bidder a portfolio that includes blockbuster franchises such as Harry Potter, Game of Thrones and DC Studios, alongside major networks including CNN.
David Ellison said the deal would act as “a catalyst for greater content production, greater theatrical output and more consumer choice”, adding that Paramount’s proposal would preserve and strengthen “an iconic Hollywood treasure”.
Warner Bros Discovery has yet to respond publicly to the revised financing guarantees, while Netflix declined to comment. As the contest intensifies, the outcome is set to reshape the global entertainment landscape, and determine who controls some of the most powerful storytelling assets in modern media.
