Paramount Skydance has escalated its pursuit of Warner Bros. Discovery by amending its takeover bid to include a massive personal guarantee from Oracle founder Larry Ellison. The move comes after WBD formally recommended its shareholders reject Paramount’s previous offer, citing a superior existing agreement with Netflix. The revised proposal now features what is described as an irrevocable personal guarantee from Larry Ellison worth 40.4 billion dollars. Ellison, a key backer of Skydance through his son and Paramount Skydance CEO David Ellison, has committed that this guarantee cannot be revoked or have its supporting assets adversely transferred while the transaction is pending. This addresses a core concern raised by WBD, which had stated that such a personal guarantee was the only way to remedy the financing uncertainties of Paramount’s initial bid. Paramount’s original all cash offer of 30 dollars per share, valuing WBD at approximately 108 billion dollars, was publicly announced on December 4th. However, just one day later, WBD announced it had accepted an 82.7 billion dollar all stock offer from Netflix. The WBD board subsequently deemed the Paramount bid not superior and not in the best interests of its shareholders. In its response, Paramount expressed frustration, noting that WBD did not raise concerns about financing or demand a personal guarantee during a 12 week negotiation period prior to the Netflix deal. Despite this, the company has now matched several terms of the Netflix agreement, including increasing its regulatory reverse termination fee to 5.8 billion dollars and offering more flexible transaction conditions. The amended offer also includes a commitment to publish details of the Ellison family trust assets backing the guarantee. David Ellison argued that Paramount’s offer remains the superior option for maximizing shareholder value, emphasizing that their plan would catalyze greater content production, theatrical output, and consumer choice. He called on the WBD board to take the necessary steps to secure what he termed a value enhancing transaction that would preserve an iconic Hollywood studio. The bidding war highlights the intense consolidation happening within the media and entertainment industry as companies seek scale to compete in the streaming era. Paramount’s bid, notably backed by sovereign wealth funds from Saudi Arabia and Qatar, represents a more traditional media conglomerate model seeking to combine major film and television libraries. In contrast, a Netflix acquisition would mark the streaming giant’s largest move into owning legacy studio operations and physical production assets. Paramount’s amended tender offer is set to expire on January 21, 2026, leaving WBD shareholders and the board to weigh the certainty of Ellison’s cash guarantee against the strategic fit and potential growth offered by a merger with Netflix. The outcome will significantly reshape the competitive landscape of global media.
