Paramount Pictures has strengthened its hostile takeover offer for Warner Bros. Discovery with a personal financial guarantee of $40.4billion from Oracle co-founder Larry Ellison, signaling a new chapter in the high-stakes bidding war reshaping the media landscape.
On Monday, Paramount announced that Ellison, the world’s third-richest person, has committed an “irrevocable personal guarantee” of $40.4 billion to finance the company’s $108 billion bid.
Paramount emphasized that Ellison would not revoke his family trust or transfer assets during the transaction, addressing concerns raised by Warner Bros. Discovery about the security and reliability of the financing.
The amended bid comes after Warner Bros. Discovery had questioned whether the full Ellison family trust would remain committed to Paramount’s offer. In a recent Securities and Exchange Commission filing, the media conglomerate noted that the family has “no obligation” to cooperate but acknowledged that a personal guarantee from Ellison would suffice to move the negotiations forward.
An excerpt of the statement by the company filed on Monday reads,
‘‘Nonetheless, Paramount has elected to address WBD’s current stated concerns, and has amended its offer to WBD shareholders as follows:
‘’ 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. Mr. Ellison has agreed not to revoke the Ellison family trust (which has been operating for nearly 40 years as a counterparty to numerous transactions) or adversely transfer its assets during the pendency of the transaction.’’
Paramount indicated that the guarantee addresses Warner Bros. Discovery’s “amorphous need for ‘flexibility’ in interim operations,” providing assurance that funding is secure while the companies complete regulatory, legal, and operational reviews.
The revised offer also includes an increase in the breakup fee to $5.8 billion, up from the original $5 billion, should the transaction fail to close.
Ellison, whose son David Ellison serves as CEO of Paramount Skydance, ranks among the wealthiest individuals globally. His net worth was estimated at $242.7 billion as of Monday, placing him behind Tesla CEO Elon Musk but ahead of most other billionaires. Analysts note that his involvement could lend additional credibility to Paramount’s bid, given his longstanding influence in technology and media investment circles.
The Paramount bid remains in direct competition with Netflix, which in early December agreed to acquire Warner Bros. assets for $82.7 billion in a combination of cash and stock. Warner Bros. Discovery’s board has publicly supported the Netflix deal, describing it as a safer and more structured transaction.
Paramount’s aggressive counteroffer, now bolstered by Ellison’s guarantee, underscores the escalating stakes and the growing complexity of mergers in the streaming and entertainment sectors.
Industry reports observe that the Ellison-backed bid reflects a broader trend of ultra-wealthy investors using personal capital to influence major media acquisitions, combining financial muscle with strategic oversight. The deal, if completed, would be one of the largest media buyouts in history, with implications for content ownership, distribution, and the global streaming market.
Warner Bros. Discovery shareholders will ultimately weigh both bids, factoring in the security of financing, strategic fit, and regulatory risks. Analysts predict that the next several months will be decisive, with additional filings and negotiations likely shaping the outcome of this high-profile corporate battle.