Oracle's Larry Ellison pledges $40.4 billion personal guarantee to Paramount’s bid for Warner Bros.

Paramount Global has escalated its aggressive pursuit of Warner Bros. Discovery by obtaining a substantial personal guarantee of $40.4 billion from Larry Ellison, co-founder of Oracle. This significant move, revealed on December 22, aims to alleviate concerns regarding the financial backing of the bid, which previously caused the WBD board to lean towards a rival offer from Netflix. The updated proposal maintains a valuation of $30 per share, constituting an all-cash offer valued at roughly $108.4 billion, including debt. This ambitious bid stands in stark contrast to the $82.7 billion agreement recently established between WBD and Netflix. While Netflix's deal focuses on acquiring WBD’s film and television studios along with its streaming platforms, Paramount seeks to acquire the entire corporation, encompassing its linear networks such as CNN, Cartoon Network, and the Discovery Channel. To enhance transparency and satisfy the WBD board's requirements, Paramount has disclosed that the Ellison family trust possesses 1.16 billion shares of Oracle stock. Additionally, Larry Ellison has pledged not to revoke the trust or relocate its assets while the transaction is in progress. In a strategic move, Paramount has also raised its regulatory reverse termination fee to $5.8 billion, matching Netflix’s offer should the deal encounter antitrust challenges. David Ellison, CEO of Paramount Skydance and Larry Ellison's son, emphasized that this proposal is the optimal choice to maximize shareholder value and stimulate increased content production. However, despite these commitments, the WBD board has previously labeled the offer as “illusory” and has recommended that shareholders back the Netflix deal. The potential merger of these media giants is likely to face intense regulatory scrutiny in both the United States and Europe, with critics warning that it could grant a single entity excessive control over the American television market. Shareholders are anticipated to cast their votes on these competing proposals in early 2026, with the current tender offer extended until January 21.