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Ellison Puts $40.4 Billion Personal Guarantee Behind Paramount’s Bid for Warner Bros. Discovery

Shareholders now face a strengthened hostile tender, with the board continuing to favor Netflix’s narrower deal.

Overview

  • Oracle chairman Larry Ellison agreed to an irrevocable $40.4 billion personal backstop for Paramount Skydance’s equity financing and any damages claims.
  • Paramount kept its all‑cash offer at $30 per share for 100% of WBD and extended the tender deadline to Jan. 21, 2026.
  • The revised proposal matches Netflix’s $5.8 billion regulatory reverse termination fee and adds commitments not to revoke the Ellison family trust, alongside disclosures showing about 1.16 billion Oracle shares in the trust.
  • WBD’s board maintains that the Netflix transaction valuing studios and streaming at about $82.7 billion is superior and has called Paramount’s bid inadequate, though some investors have indicated openness to revised terms.
  • Netflix also reinforced its financing by refinancing part of a $59 billion bridge loan and arranging additional credit, as both bids head toward intensive regulatory review.