Paramount Ups the Ante: Larry Ellison Pledges $40.4 Billion Personal Guarantee in Hostile Bid for Warner Bros. Discovery
In a dramatic escalation of the Hollywood bidding war of the century, Paramount Skydance has unleashed its ultimate weapon: an irrevocable personal guarantee from Oracle co-founder and multi-billionaire Larry Ellison.
The move is a direct counterstrike against the Warner Bros. Discovery (WBD) board, which recently rejected Paramount’s $108.4 billion hostile takeover bid in favor of a $72 billion agreement with Netflix. WBD had previously criticized Paramount’s financing as “illusory” and “opaque,” but the tech mogul’s personal backstop aims to vaporize those concerns once and for all.
The Breakdown: Paramount vs. Netflix
The battle for WBD has split the industry into two camps. While Netflix seeks to absorb the studio and streaming assets (HBO/Max) while spinning off linear networks, Paramount wants the entire kingdom.
| Feature | Paramount Skydance Bid | Netflix Agreement |
| Total Valuation | $108.4 Billion (Hostile) | $72 Billion (Equity) / $82.7B (EV) |
| Offer per Share | $30.00 (All-Cash) | $27.75 (Cash + Stock) |
| Financing Backstop | $40.4B Personal Guarantee (Larry Ellison) | Corporate Credit / $25B Bridge Loans |
| Assets Included | 100% of WBD (Including CNN & Linear) | Studios & Streaming Only |
| Termination Fee | $5.8 Billion | $5.8 Billion |
Clearing the “Brush of Obfuscation”
Paramount CEO David Ellison and his primary investor, Gerry Cardinale of RedBird Capital, are making it clear that they will not be sidelined. To address WBD’s skepticism regarding the Ellison Family Trust, the revised offer includes a six-point guarantee:
The $40.4B Backstop: Larry Ellison has personally committed to covering the equity financing and any potential damage claims against Paramount
Extended Deadline: The expiration date for the tender offer has been pushed to January 21, 2026, giving shareholders more time to break ranks with the board.
Matching the Penalty: Paramount raised its regulatory reverse termination fee to $5.8 billion, matching the high-stakes “insurance policy” offered by Netflix.
Paramount has repeatedly demonstrated its commitment to acquiring WBD. We expect the board of directors of WBD to take the necessary steps to secure this value-enhancing transaction.” — David Ellison, Paramount CEO.
The Regulatory Wild Card
The merger faces a complex path regardless of the winner. While Netflix’s bid for HBO Max raises eyebrows regarding streaming dominance, Paramount’s bid involves heavy backing from Middle Eastern sovereign wealth funds (Qatar, Saudi Arabia, and Abu Dhabi), which has sparked concerns about FCC foreign ownership rules. Paramount maintains these rules don’t apply as the funds have waived governance rights.
