Larry Ellison, one of the world’s richest individuals and chairman of Oracle Corp., has stepped in with a massive personal commitment to strengthen Paramount Skydance Corp.’s bid for Warner Bros. Discovery Inc., intensifying an already fierce takeover battle with Netflix Inc.
Ellison, 81, has agreed to provide an irrevocable personal guarantee of $40.4 billion in equity financing, aiming to eliminate concerns raised by the Warner Bros. board over the reliability of Paramount’s funding structure. The move gives Paramount a crucial edge as both bidders race to secure shareholder confidence.
Why Ellison’s Backing Matters
Previously, Warner Bros. had urged shareholders to reject Paramount’s offer partly because Ellison’s backing came through a revocable family trust, which could be altered at any time. That objection may now be neutralised.
According to a statement released Monday, Ellison has:
- Made his equity commitment irrevocable
- Agreed not to amend or revoke the Ellison family trust during the transaction
- Confirmed the trust holds around 1.16 billion Oracle shares
- Personally guaranteed any potential damages linked to the deal
This assurance directly addresses Warner Bros.’s concerns about financing certainty and deal stability.
Netflix vs Paramount: A High-Stakes Showdown
Netflix, which has agreed to acquire Warner Bros.’s streaming and studio assets for $82.7 billion, has also strengthened its position by refinancing part of its planned $59 billion debt, reinforcing its investment-grade credit rating — a major advantage over Paramount’s more leveraged balance sheet.
Despite Paramount’s improved offer, Warner Bros. confirmed it will continue to back the Netflix deal while evaluating the revised proposal.
Improved Terms Sweeten Paramount’s Offer
Paramount’s amended bid includes:
- A higher regulatory reverse termination fee of $5.8 billion, up from $5 billion
- Greater flexibility for Warner Bros. on debt refinancing and interim operating covenants
- A total offer value of $108.4 billion, including debt, or $30 per share
Warner Bros., however, would still owe $2.8 billion to Netflix if it abandons the existing agreement.
Market Reacts Positively
Investors responded quickly:
- Warner Bros. shares rose 3.5% to $28.75
- Paramount gained 4.3%
- Netflix slipped 1.2%
David Ellison, Paramount’s CEO, said the offer remains the “superior option” for shareholders, promising increased investment, expanded content production, and greater consumer choice.
Experts Weigh In
Market participants say Ellison’s guarantee could be a turning point.
Louis Navellier, CIO at Navellier & Associates, called Warner Bros.’ earlier concerns “bogus,” arguing that Ellison’s backing removes financing risk entirely.
However, Bloomberg Intelligence cautioned that, even with enhanced terms, Paramount’s bid still trails Netflix’s in overall value when factoring in financing costs and termination penalties.
What’s Next
The Warner Bros. board now faces mounting pressure as financing objections weaken and shareholder expectations rise. Whether Ellison’s personal guarantee is enough to derail Netflix’s lead deal remains the central question in one of the biggest media takeover battles of the decade.