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Ellison’s $40.4 Billion Guarantee Strengthens Paramount Bid for WBD as Board Reviews

Netflix reinforced its competing deal by refinancing portions of a $59 billion bridge loan.

Overview

  • Paramount kept its hostile, all-cash offer at $30 per share for 100% of WBD, valuing the company at about $108.4 billion.
  • Larry Ellison issued an irrevocable $40.4 billion personal guarantee, pledged not to revoke the family trust, and disclosed trust holdings of about 1.16 billion Oracle shares.
  • Paramount raised its reverse termination fee to $5.8 billion to match Netflix and said its revised terms allow WBD greater interim operating flexibility.
  • Warner Bros. Discovery confirmed receipt of the amended proposal and said the board will review it with advisors consistent with its agreement with Netflix.
  • Netflix refinanced part of its $59 billion bridge financing with a $5 billion revolver and two $10 billion delayed-draw term loans, with Wells Fargo, BNP Paribas and HSBC among the lenders.