Larry Ellison guarantees $40.4 billion in Paramount's hostile bid for
Warner Bros. Discovery
[December 23, 2025] By
WYATTE GRANTHAM-PHILIPS
Paramount is sweetening its hostile takeover bid for Warner Bros.
Discovery with an “irrevocable personal guarantee” from Larry Ellison,
who is putting up billions of dollars to back the deal for his son’s
company.
On Monday, Skydance-owned Paramount announced that Larry Ellison — the
founder of Oracle and father of Paramount CEO David Ellison — had
personally agreed to be responsible for $40.4 billion of equity
financing for the company's offer, as well as any damage claims.
Paramount had previously said that the Ellison family trust would be
backing more than $40 billion of its bid for Warner. But Warner's board
was critical of that decision last week, arguing that Paramount had
“consistently misled” shareholders about the Ellison family's backing
because a “revocable trust is no replacement for a secured commitment.”
Paramount took a swipe at that assertion on Monday — maintaining that
Larry Ellison holds the majority of the trust's assets and that Warner
had not previously asked for a personal guarantee. But nevertheless, the
company said, it “elected to address WBD’s current stated concerns.”
Beyond doubling down on Ellison's backing, Paramount also said it would
increased its payout if the deal is blocked by regulators. The company
is now upping the breakup fee to $5.8 billion — matching what Netflix
has already put on the table for its proposed transaction.
The value of Paramount's $30 per share offer otherwise remains
unchanged. But the company is extending the window for shareholders to
“tender” their shares, with a deadline now set for Jan. 21.
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The Paramount Pictures water tower is seen in Los Angeles, Thursday,
Dec. 18, 2025, with the Hollywood sign in the distance. (AP
Photo/Jae C. Hong)
 “Paramount has repeatedly
demonstrated its commitment to acquiring WBD," Paramount CEO David
Ellison said in a statement, adding that his company's offer
continues to be “the superior option to maximize value for WBD
shareholders.”
Paramount's all-cash bid for all of Warner’s properties — including
networks like CNN and Discovery — is valued at $77.9 billion, not
including debt. But Warner’s board has urged shareholders to back
the cash-and-stock deal it struck with Netflix earlier this month,
which would sell its studio and streaming business for $72 billion.
The Associated Press reached out to media contacts for Warner and
Netflix for further comments on Monday. In a letter to shareholders
last week, Warner's board maintained that the terms of the Netflix
merger were superior, while “the PSKY offer is illusory.”
Also on Monday, Netflix disclosed that it had refinanced part of its
$59 billion bridge loan for its proposed acquisition. A regulatory
filing outlined $15 billion in financing between revolving credit
and delayed-draw term loans.
Shares of Paramount-Skydance jumped more than 5% in Monday morning
trading. Warner Bros. Discovery stock was up almost 3%, while
Netflix slipped about 0.7%.
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