Paramount Pictures has significantly strengthened its hostile takeover bid for Warner Bros. Discovery by securing a $40.4 billion personal financial guarantee from Oracle co-founder Larry Ellison, marking a major escalation in one of the most closely watched media battles in recent years.
On Monday, Paramount announced that Ellison has provided an “irrevocable personal guarantee” to back the equity financing and potential damages tied to its $108 billion offer for Warner Bros. Discovery. The move is aimed at addressing concerns raised by WBD over the reliability and permanence of the proposed funding structure.
According to Paramount, Ellison has also committed not to revoke his family trust or transfer assets in a way that could undermine the transaction while negotiations and reviews are ongoing. This assurance directly responds to Warner Bros. Discovery’s earlier reservations about whether the Ellison family trust would remain fully committed to the deal.
In a recent filing with the Securities and Exchange Commission, Warner Bros. Discovery noted that members of the Ellison family had “no obligation” to cooperate with the bid, but acknowledged that a personal guarantee from Larry Ellison himself would be sufficient to move discussions forward.
An excerpt from Paramount’s updated filing stated:
“Nonetheless, Paramount has elected to address WBD’s current stated concerns, and has amended its offer to WBD shareholders as follows: Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount. Mr. Ellison has agreed not to revoke the Ellison family trust or adversely transfer its assets during the pendency of the transaction.”
Paramount said the revised structure also addresses Warner Bros. Discovery’s request for greater operational “flexibility” during the interim period, assuring stakeholders that funding will remain stable throughout regulatory, legal, and operational reviews.
In addition to the financing guarantee, Paramount has increased the breakup fee associated with the deal to $5.8 billion, up from the initial $5 billion, should the transaction fail to close.
Larry Ellison, whose son David Ellison is the CEO of Paramount Skydance, remains one of the most influential figures in global technology and media investment. As of Monday, his net worth was estimated at $242.7 billion, ranking him among the world’s wealthiest individuals.
Industry analysts suggest Ellison’s direct financial backing could significantly strengthen Paramount’s position, lending credibility and financial certainty to a bid that could dramatically reshape the global media landscape if successful.
