Larry Ellison, the co-founder of Oracle and one of the world’s richest people, has stepped in personally to back Paramount Skydance’s bid for Warner Bros. Discovery. The move is aimed at allaying concerns over whether Paramount really has the money to close the deal.
Oracle co-founder Larry Ellison will provide a personal guarantee of $40.4 billion in equity financing to support Paramount Skydance’s all-cash $108.4 billion bid for Warner Bros. Discovery, according to a regulatory filing.
The guarantee is meant to reassure the Warner Bros. board, which has repeatedly raised concerns about Paramount’s financing and the lack of full backing from the Ellison family. Those concerns led Warner Bros. to favor a competing cash-and-stock offer from Netflix. By putting his own wealth on the line, Ellison is directly addressing those doubts.
What the guarantee actually means?
Ellison is guaranteeing all $40.4 billion of equity he is contributing to finance the deal. If something goes wrong with the transaction, he would personally be on the hook, this is a huge committment given that the amount represents roughly one-sixth of his estimated $250 billion net worth.
As part of the revised terms, Ellison also agreed not to revoke the family trust or transfer its assets while the deal is pending. Paramount also disclosed records showing that the trust owns 1.16 billion Oracle shares, countering questions raised by Warner Bros.’ board about the trust’s assets.
Regardless of the stronger guarantees, Paramount said the core offer stays the same. The company is still offering $30 per share in an all-cash deal.
Paramount also raised its regulatory reverse termination fee to $5.8 billion from $5 billion, matching Netflix’s breakup fee, and extended the expiration of its tender offer to January 21, 2026.
Why the Warner Bros. board is still skeptical
Warner Bros. Discovery has already asked shareholders to reject Paramount’s bid, stating financing concerns and what it called “illusory” proposed funding.
The board has instead leaned toward Netflix’s offer, which it says is more valuable. Netflix and Warner Bros. argue that spinning off cable TV assets would unlock more value, even though Netflix’s per-share offer is lower at $27.75. Still, some Warner Bros. investors, including Harris Associates, its fifth-largest shareholder, have said they would consider a revised Paramount bid if financing concerns were properly addressed.
The bidding war explains how valuable Warner Bros.’ content library has become in the streaming era. The winner would gain a major edge by locking up blockbuster films, TV shows, and sports rights.
“Paramount remains in a precarious position and is making a last-ditch effort to avoid being left out in the shadows,” said Paolo Pescatore, analyst at PP Foresight to CNN. “The improved offer is a step in the right direction, but it is unlikely to be enough.”
Regulatory hurdles
Even if shareholders approve a deal, regulators could block it. Lawmakers in the US and Europe have raised concerns about media consolidation, and US President Donald Trump has said he plans to weigh in.
A Paramount–Warner Bros. merger would create a studio larger than Disney and combine two major TV operators. Some Democratic senators warn it could give one company control over “almost everything Americans watch on TV.”
A Netflix–Warner Bros. deal, meanwhile, would create a streaming giant with 428 million combined subscribers. Netflix states that its deal would benefit consumers through bundled offerings and avoid job cuts.