The Warner Bros. acquisition deal is taking another twist as Larry Ellison steps in with a $40.4 billion personal guarantee to back Paramount Skydance’s bid. The Oracle co-founder’s pledge covers the equity portion of Paramount’s $108.4 billion all-cash offer, addressing concerns from WBD’s board about whether the company could fully finance the deal. On top of that, Ellison has also committed not to touch and transfer assets from his family trust, adding an extra layer of credibility to the deal.
Paramount’s revised bid comes after Warner Bros. Discovery’s board had raised concerns about the solidity of the original offer, which relied heavily on a revocable family trust without a firm personal guarantee. Last week, in a formal appeal to investors, WBD’s board warned that Paramount’s proposal lacked firm financing commitments and carried significant execution risk, noting that much of the financing was neither irrevocable nor fully underwritten, which could lead to delays or even failure. But now, Ellison’s commitment effectively removes this uncertainty, showing that Paramount is serious about completing the acquisition.
“Paramount has repeatedly demonstrated its commitment to acquiring WBD. Our $30 per share, fully financed all-cash offer was on December 4th, and continues to be, the superior option to maximize value for WBD shareholders. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater theatrical output, and more consumer choice,” David Ellison, CEO of Paramount, noted.
However, despite this backing, Paramount has kept its $30-per-share offer unchanged, opting instead to strengthen deal protections. At the same time, the company increased the reverse termination fee (the amount payable if regulators block the acquisition) from $5 billion to $5.8 billion, aligning with protections in Netflix’s competing bid. Notably, Netflix’s offer, which values Warner Bros. Discovery at $72 billion with a total enterprise value of $82.7 billion including debt, also includes a $5.8 billion breakup fee and gives shareholders $23.25 per share in cash plus $4.50 per share in Netflix stock.
Meanwhile, Paramount also extended the shareholder tender deadline to January 21, 2026, giving investors additional time to weigh the offer. The acquisition contest is part of a larger battle for one of Hollywood’s most valuable media empires. Paramount Skydance, formed through the 2025 merger of Paramount Global and Skydance Media, is competing against Netflix. Most importantly, apart from valuation and structure, there is one more major difference between the offers. While Paramount’s bid would include key cable properties like CNN, Netflix’s offer excludes them.
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