Oracle’s Larry Ellison Offers $40.4B Guarantee in Paramount’s Warner Bros Bid

Key Highlights

• Larry Ellison has given an irrevocable $40.4 billion personal guarantee to back Paramount Skydance’s bid for Warner Bros Discovery.
• Paramount has kept its $30-per-share all-cash offer unchanged while matching Netflix’s $5.8 billion regulatory breakup fee.
• The move sharpens a high-stakes takeover battle that could reshape the global streaming and media industry.

Larry Ellison, co-founder of Oracle, has pledged a binding personal guarantee of $40.4 billion to back Paramount Skydance’s attempt to take over Warner Bros Discovery, according to a regulatory filing released Monday.

Ellison Steps In to Bolster Paramount’s Warner Bros Bid

The guarantee covers a large portion of the equity financing behind Paramount’s offer and is designed to remove doubts over funding certainty. Paramount said the amended terms do not change its $30-per-share all-cash bid, which values WBD at roughly $108 billion including debt.

The move marks a significant escalation in a takeover battle that has drawn global attention as media companies seek scale, pricing power, and content depth amid slowing subscriber growth and rising production costs.

Funding Certainty Becomes Central to the Takeover Fight

Concerns over deal financing had emerged as a key sticking point after WBD questioned whether backing from the Ellison family trust was sufficient. While the trust holds a majority of Larry Ellison’s assets, WBD argued that a direct personal guarantee was needed to fully underwrite the Warner Bros bid.

In response, Paramount amended its offer to include Ellison’s personal guarantee, which also covers potential damage claims related to the transaction. Ellison has additionally agreed not to revoke the family trust or transfer its assets during the deal process.

Paramount disclosed that the Ellison family trust owns approximately 1.16 billion shares of Oracle stock, underlining the depth of financial backing behind the offer.

Paramount Matches Netflix Terms as Rival Bid Intensifies

The revised offer comes after WBD moved forward with a competing transaction involving Netflix, prompting Paramount to accuse WBD of favouring a less attractive proposal.

To counter that challenge, Paramount said it would raise its regulatory reverse termination fee from $5 billion to $5.8 billion, matching Netflix’s terms, as reported by Variety. The bidder also offered WBD greater flexibility on debt refinancing, interim operating covenants, and representations, while keeping all other commercial terms intact.

Paramount emphasized that its offer depends on WBD keeping full ownership of its Global Networks business, which Paramount values at $1 per share. The company also criticised WBD’s disclosures, saying shareholders lacked sufficient detail to fully assess how the Netflix deal compares with Paramount’s all-cash offer.

Why the Deal Matters for the Streaming Wars

The battle for WBD is widely seen as pivotal for the future of global streaming. Control of Warner Bros’ film studios, HBO, and a vast television library would give the winning bidder a significant edge at a time when streamers are under pressure to cut costs, boost margins, and retain subscribers.

Analysts say an all-cash acquisition backed by Ellison’s personal guarantee could strengthen Paramount Skydance’s position with regulators and investors, even as scrutiny of media consolidation remains high in the US and Europe.

What Happens Next

Paramount said its wholly owned subsidiary, Prince Sub Inc., has extended the expiration date of its tender offer to January 21, 2026, unless further extended.

Furthermore, chairman and CEO David Ellison said the company’s fully financed cash offer remains the best option for WBD shareholders and would unlock long-term value across content production, theatrical releases, and consumer choice.

With funding concerns now addressed directly by Larry Ellison’s backing, the focus is expected to shift to regulatory approvals, shareholder sentiment, and potential counter-moves, as one of Hollywood’s biggest takeover battles moves into a decisive phase.