Paramount on Monday amended its hostile bid for Warner Bros. Discovery, adding an “irrevocable personal guarantee” from Oracle co-founder Larry Ellison to support the $108 billion offer.
The move comes after WBD last week raised concerns about Paramount’s proposal, noting that it had already accepted an $82.7 billion offer from Netflix. Paramount’s revised bid maintains the original $30-per-share valuation.
Ellison, one of the world’s wealthiest individuals, has long backed Skydance, the production company run by his son, David Ellison. While Larry Ellison is involved in the proposed WBD acquisition, the WBD board questioned the transaction’s structure. They cited potential unpredictability due to the Ellison family trust.
In a filing with the Securities and Exchange Commission, Paramount said, “Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount.”
The company also announced an increase in its breakup fee to $5.8 billion, matching Netflix’s terms. Additionally, Paramount said Ellison would not revoke the family trust. He also would not transfer its assets in a way that could affect the deal.
The Ellison family trust holds approximately 1.16 billion shares of Oracle stock. Paramount noted that all material liabilities tied to the family have been publicly disclosed.
Paramount criticized the handling of the WBD merger process. It asserted that none of the board’s concerns, nor the demand for a personal guarantee, were raised during the 12 weeks before WBD agreed to Netflix’s “inferior transaction,” according to the filing.
The competition for WBD could reshape Hollywood’s entertainment landscape. Paramount’s offer encompasses all of WBD, including legacy cable networks. Netflix’s bid targets only the studio-and-streaming division, which includes Warner Bros. and HBO. WBD had planned to split into two companies in 2026. Netflix intends to respect that strategy before assuming control of the studio-and-streaming assets.
Paramount also extended the deadline for shareholders to respond, moving it from January 8 to January 21.
“Paramount has repeatedly demonstrated its commitment to acquiring WBD,” said Paramount CEO David Ellison. “Our $30 per share, fully financed all-cash offer was on December 4, and continues to be, the superior option to maximize value for WBD shareholders. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater theatrical output, and more consumer choice. We expect the board of directors of WBD to take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future.”
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