Oracle founder Larry Ellison has stepped in with a decisive financial move, offering an irrevocable personal guarantee of $40.4 billion to strengthen Paramount Skydance’s bid for Warner Bros. Discovery (WBD). The intervention significantly raises the stakes in the battle for one of Hollywood’s most valuable content portfolios and is aimed at addressing concerns raised by the WBD board regarding the certainty of Paramount’s financing-concerns that had recently favored a competing offer from Netflix.
Disclosed through a regulatory filing, the guarantee covers the full equity financing of the deal as well as any potential damages claims against Paramount. Importantly, the move does not alter the headline valuation. Paramount has reiterated its $30-per-share all-cash offer, signalling that the restructuring is focused on de-risking the transaction rather than increasing price.
Paramount Skydance confirmed it has amended its offer to directly respond to WBD’s reservations, stating it remains committed to acquiring 100% of WBD’s shares and assuming all assets and liabilities. Chairman and CEO David Ellison reaffirmed the company’s position, calling the proposal the superior option for maximising shareholder value while enabling long-term investment in content, theatrical releases and consumer choice.
To further strengthen its position, Paramount has increased its regulatory reverse termination fee to $5.8 billion, matching the protections in Netflix’s rival deal, and extended its tender offer deadline to January 21, 2026. Additional flexibility around debt refinancing and interim operating covenants has also been included.
While WBD has said it will review the revised proposal, it has not yet changed its recommendation in favour of Netflix, which carries a $2.8 billion break fee. However, some major shareholders have indicated they may reconsider if financing risks are fully resolved.
The outcome will hinge on regulatory scrutiny, shareholder sentiment and whether Paramount’s enhanced guarantees are sufficient to reopen negotiations in an intensifying media consolidation battle.
