Larry Ellison steps in with $40 billion personal guarantee as Paramount presses Warner Bros bid

Larry Ellison, the billionaire co-founder of Oracle, has moved to strengthen Paramount Skydance’s bid for Warner Bros. Discovery by personally guaranteeing $40.4 billion in financing, a step aimed at countering concerns that had pushed Warner Bros.’ board toward a rival offer from Netflix. Reports stated.

The guarantee, disclosed in a regulatory filing on Monday, seeks to address doubts about the depth of financial backing behind Paramount’s offer, including the absence of a full guarantee from the Ellison family. Those concerns had weighed on the Warner Bros. board as it considered a competing cash-and-stock proposal from Netflix.

Warner Bros. said it would review the revised terms but added that its board was not changing its recommendation in favor of the Netflix transaction.

Paramount said the amended proposal does not alter its $30-per-share all-cash offer, even as the contest for some of Hollywood’s most valuable assets intensifies. Control of Warner Bros.’ extensive film and television library is widely seen as a strategic advantage in an increasingly competitive streaming market.

As part of the revised terms, Ellison also agreed not to revoke the Ellison family trust or transfer its assets while the transaction is pending, according to the filing. Paramount further said it had increased its regulatory reverse termination fee to $5.8 billion, from $5 billion, to match the competing offer and extended the expiration date of its tender offer to Jan. 21, 2026.

The latest move follows Warner Bros.’ request that shareholders reject Paramount’s $108.4 billion offer for the company, which includes its cable television assets, citing financing concerns and the lack of a comprehensive family guarantee from the Ellisons. Under the Netflix agreement, Warner Bros. would owe Netflix a $2.8 billion breakup fee if it abandons that deal.

Even if shareholder support is secured, both transactions are expected to face intense regulatory scrutiny in the United States and Europe.

A merger between Paramount and Warner Bros. would create a studio larger than Disney and combine two major television operators in US. A deal between Netflix and Warner Bros., by contrast, would further entrench Netflix’s dominance in streaming, creating a company with a combined 428 million subscribers.

Netflix has argued that its proposal would benefit consumers through bundled offerings and said it would honor Warner Bros.’ theatrical commitments. Its co-chief executive, Ted Sarandos, has expressed confidence that the deal would clear regulatory hurdles, saying it would avoid job losses in an industry already under pressure from uneven box office performance.