Mumbai: Larry Ellison has stepped in with his personal fortune to strengthen Paramount Skydance Corp.’s bid for Warner Bros. Discovery Inc., intensifying a high-stakes takeover battle with Netflix Inc. The move is aimed at addressing Warner Bros.’ key concern around the certainty of Paramount’s financing.
On Monday, both bidders shored up their funding without raising their offers. Netflix refinanced part of its planned $59 billion debt package to preserve its investment-grade rating, a key advantage over Paramount, which is rated below investment grade. Paramount, however, unveiled a major change: an irrevocable personal guarantee from Ellison, the world’s fifth-richest person, worth $246 billion.
Ellison, 81, agreed to personally guarantee $40.4 billion in equity financing and any potential damages tied to the deal. He also committed not to revoke or amend the Ellison family trust during the transaction period. Previously, Warner Bros. had urged shareholders to reject Paramount’s $30-a-share offer—valued at $108.4 billion including debt—citing concerns that the trust backing the equity could be withdrawn.
Warner Bros. confirmed receipt of Paramount’s revised proposal and said it will evaluate the changes, though it continues to support its existing $82.7 billion agreement with Netflix for its streaming and studio assets.
Paramount has also raised its regulatory reverse termination fee to $5.8 billion from $5 billion, while Warner Bros. would owe Netflix $2.8 billion if it abandons that deal. Shares of Warner Bros. rose 3.5% on Monday, while Paramount gained 4.3% and Netflix slipped 1.2%.
David Ellison, Paramount’s CEO, said the offer remains “the superior option to maximize value for Warner Bros. shareholders,” arguing that the deal would drive greater content production and preserve a more traditional Hollywood structure.
Some investors say the personal guarantee weakens Warner Bros.’ rationale for rejecting Paramount. Others remain skeptical. Bloomberg Intelligence said the revised terms still leave Paramount’s bid inferior due to financing costs and risk, particularly given the heavy debt load the merged company would carry.
Paramount’s offer is backed by $54 billion in bank commitments and $40.4 billion in equity, including funding from the Ellison family and Middle Eastern sovereign wealth funds. Netflix, meanwhile, has secured $59 billion in unsecured financing and benefits from cheaper borrowing thanks to its investment-grade status.
The outcome of the battle for the century-old Warner Bros. studio could reshape the global entertainment industry, pitting a traditional Hollywood vision against the scale and financial strength of the world’s largest streaming platform.
