Oracle co-founder Larry Ellison has agreed to personally guarantee $40.4 billion in equity financing to support Paramount Skydance’s all-cash offer for Warner Bros. Discovery, according to a regulatory filing released on Monday.
The personal guarantee is likely to strengthen the financing structure of the deal, which had previously drawn objection from Warner Bros.’ board when it rejected Paramount’s proposal in favour of Netflix, as reported by Reuters. Paramount said the revised terms do not alter its $30-per-share all-cash bid.
Following the news, Warner Bros. Discovery shares rose 2.5% in premarket trading, while Paramount Skydance shares climbed approximately 1.6%.
The contest for Hollywood’s most valuable assets continues to intensify, with no clear end in sight. The eventual winner would gain a significant edge in the streaming wars by securing a vast content library that has long been sought after in major media acquisitions.
Ellison also committed to keeping the Ellison family trust intact, agreeing not to revoke it or move its assets while the transaction is pending.
In a statement, Paramount said, "In an effort to address Warner Bros.’s amorphous need for ‘flexibility’ in interim operations, Paramount’s revised proposed merger agreement offers further improved flexibility to Warner Bros. on debt refinancing transactions, representations and interim operating covenants."
‘Paramount remains in a precarious position’
As per a Reuters report, Paolo Pescatore, analyst at PP Foresight, stated, “Paramount remains in a precarious position and is making a last-ditch effort to avoid being left out in the shadows.” Paolo said that the enhanced offer was a step in the right direction, but he believed it was unlikely to be sufficient.
Paramount mentioned that it has increased its regulatory reverse termination fee to $5.8 billion from $5 billion to align with the competing deal and has extended the deadline for its tender offer to 21 January 2026, the report said.
The bid comes after Warner Bros. urged shareholders to reject Paramount’s $108.4 billion offer for the entire company, including its cable television assets, citing concerns about the deal’s financing and the absence of a full guarantee from the Ellison family.
However, some Warner Bros. investors, including its fifth-largest shareholder Harris Associates, have indicated they would consider revised proposals from Paramount if the company submits a stronger offer and resolves issues related to the transaction’s terms.
