Larry Ellison Pledges Billions to Strengthen Paramount’s Warner Bros. Discovery Bid

Paramount Skydance is making a bold move in its fight to acquire Warner Bros. Discovery, securing a $40.4 billion personal guarantee from Oracle co-founder Larry Ellison to strengthen its $108 billion all-cash offer, according to the company. The bid is designed to compete directly with Warner Bros. Discovery’s existing deal with Netflix.

The offer, led by David Ellison, Paramount’s chairman and CEO and Larry Ellison’s son, now includes a breakup fee of $5.8 billion to match Netflix’s, payable if the deal fails regulatory approval. Paramount continues to propose $30 per share for all outstanding WBD shares, covering the company’s assets and liabilities.

Larry Ellison, whose net worth is estimated at nearly $243 billion, previously helped finance Skydance Media’s $8 billion purchase of Paramount Global, which completed in August. Paramount’s current bid also receives support from the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi, which together have committed $24 billion.

To address national security concerns, the funds agreed to forgo governance rights in their non-voting equity investments. Affinity Partners, the investment firm run by Jared Kushner, recently withdrew from the bid.

David Ellison emphasized the benefits of Paramount’s offer in a statement Monday: “Paramount has repeatedly demonstrated its commitment to acquiring WBD. Our $30 per share, fully financed all-cash offer… 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.”

Warner Bros. Discovery’s board rejected Paramount’s offer on December 17, urging shareholders to stick with the $83 billion Netflix agreement, under which Netflix would acquire WBD’s TV and film studios, HBO and HBO Max, and gaming assets. The board accused Paramount of previously misleading shareholders about the Ellison family’s backing and said a personal guarantee from Larry Ellison was essential.

Paramount responded by providing the guarantee, verifying the assets of the Ellison family trust, offering more flexibility on WBD’s debt refinancing, and matching Netflix’s regulatory termination fee.

Paramount’s subsidiary, Prince Sub Inc., has extended the deadline for the tender offer to January 21, 2026. For Paramount to overtake Netflix, both WBD shareholders and the board would need to approve the offer, unless at least 90% of shareholders vote in favor.

Paramount has created a website, strongerhollywood.com, with updates on its offer. Netflix provides details about its deal at netflixwbtogether.com.

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