Larry Ellison backs Paramount’s Warner Bros. Discovery bid with $40.4bn guarantee

Paramount has reaffirmed its bid to acquire Warner Bros. Discovery, offering $30 per share in cash and backing the proposal with a $40.4 billion personal equity guarantee from billionaire Larry Ellison, despite the target company’s board urging shareholders to reject the offer.

In a statement issued on Monday, Paramount said it remains committed to purchasing 100% of Warner Bros. Discovery’s outstanding shares, a move that would see it assume all of the company’s assets and liabilities. The offer values Warner Bros. Discovery at an enterprise value of approximately $108.4 billion.

To strengthen its proposal, Paramount confirmed that Larry Ellison, founder of Oracle and controlling shareholder of the company, has provided an irrevocable personal guarantee covering potential claims against Paramount, alongside equity financing worth $40.4 billion. The guarantee is intended to address concerns raised by Warner Bros. Discovery during negotiations.

Ellison, one of the world’s wealthiest individuals and the father of Paramount’s chief executive, David Ellison, has played a central role in backing the takeover bid. He has also committed not to revoke or transfer assets from the Ellison Family Trust while negotiations continue, removing what Warner’s board had cited as a key risk factor.

The renewed bid follows Warner Bros. Discovery’s decision earlier this month to reach an agreement with Netflix involving its studio and streaming assets, a transaction valued at around $82–83 billion. That agreement would separate Warner’s cable television networks from its core content operations, a structure Paramount has criticised, arguing that its proposal preserves the company as a single, integrated media group.

Despite Paramount raising its proposed regulatory reverse termination fee to $5.8 billion to match Netflix’s offer, Warner Bros. Discovery’s board has formally urged shareholders to reject Paramount’s bid. The board said the Netflix transaction provides greater execution certainty, while Paramount maintains its offer delivers superior long-term value.

Paramount has rejected claims that its financing lacked credibility, stating that concerns about the Ellison family trust were not raised during more than two months of prior negotiations. David Ellison described the $30-per-share proposal as the strongest option available to maximise shareholder value.

Investors appeared to respond positively to the revised offer. Shares in Warner Bros. Discovery rose by more than 3% in afternoon trading on Monday, narrowing the gap to Paramount’s offer price. Paramount shares also gained, while Netflix stock edged lower.

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Paramount has extended its tender offer deadline to January 21, 2026, appealing directly to Warner Bros. Discovery shareholders while bypassing a board that continues to support the Netflix agreement. Any successful transaction, however, would face extensive regulatory scrutiny, with antitrust reviews likely to extend well into 2026 given the scale of the proposed merger.

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