Paramount Pursues Warner Bros. Discovery With Revised Bid

Larry Ellison Guarantees Paramount's Bid

Paramount Skydance is determined to acquire Warner Bros. Discovery and has now enhanced its bid by incorporating a 'personal, irrevocable guarantee' from Larry Ellison, valued at $40.4 billion. Ellison is the Oracle founder and supports Skydance, led by his son David Ellison, the CEO of Paramount Skydance.

On December 17, Warner Bros. Discovery officially advised its shareholders to dismiss Paramount's proposal. The company had already settled on an $82.7 billion deal with Netflix that is expected to finalize next year pending regulatory approval. The board unanimously found Paramount's offer, initiated on December 8, 2025, insufficient compared to their December 5, 2025, arrangement with Netflix, deeming it not a 'Superior Proposal.'

Initial support for Paramount's offer came from sovereign wealth funds from Saudi Arabia and Qatar. Despite assurances from the Ellisons that they would 'fully finance the bid' if needed, this was not satisfactory for Warner Bros. Discovery.

To reinforce their position, Paramount is now presenting the personal guarantee and a promise that Larry Ellison won't 'withdraw' or 'negatively modify' the Ellison family trust assets as the transaction proceeds. Warner Bros. Discovery had earlier indicated that such a personal guarantee was required to address the shortcomings of the original proposal.

Though Paramount made adjustments, they were voiced with discontent: 'These issues and the demand for a personal guarantee were never introduced by Warner Bros. Discovery or its advisors during the 12 weeks before their agreement on an inferior deal with Netflix,' stated the company regarding its revised bid.

Ellison Advocates Paramount Over Netflix

On December 4th, David Ellison asserted that their all-cash proposal of $30 per share proves to be the best strategy to boost value for Warner Bros. Discovery's shareholders. Paramount believes this acquisition will enhance growth and investment, offering an advantage over other deals by increasing content production, cinema releases, and consumer options. Ellison expects Warner Bros. Discovery's board to take necessary actions to secure this transaction and uphold the iconic Hollywood brand.

The refreshed bid from Paramount also entails disclosing the trust's assets, allowing more adaptable transaction conditions, and raising its 'regulatory reverse termination fee' from $5 billion to $5.8 billion to match Netflix's terms.

Paramount's proposal remains open until January 21, 2026.