Oracle founder and technology billionaire Larry Ellison has stepped in with a $40.4 billion personal guarantee to support Paramount’s hostile takeover bid for Warner Bros. Discovery, intensifying a high-stakes bidding war with streaming giant Netflix.
The enhanced proposal, disclosed in a statement on Monday, raises the total value of Paramount’s offer—led by David Ellison, Larry Ellison’s son—to $108 billion. The move is aimed at addressing concerns raised by the Warner Bros. Discovery (WBD) board, which had previously described Paramount’s bid as risky and urged shareholders to consider Netflix’s rival offer.
Netflix sent shockwaves through Hollywood on December 5 after announcing an agreement to acquire Warner Bros.’ film and television studio, along with the HBO Max streaming service, for nearly $83 billion—marking the largest entertainment industry consolidation deal of the decade.
Warner Bros. last week criticised Paramount’s earlier proposal, citing concerns that it relied on “an unknown and opaque revocable trust” and lacked a direct financial commitment from the Ellison family. The company also highlighted its dependence on foreign financing, noting that $24 billion of the funding would come from Middle Eastern sovereign wealth funds—potentially triggering additional regulatory scrutiny.
Paramount’s revised offer seeks to neutralise those objections. In addition to Larry Ellison’s personal guarantee, the proposal increases the breakup fee to $5.8 billion, matching Netflix’s offer. The fee would be payable if the deal fails to secure regulatory approval.
“Paramount has repeatedly demonstrated its commitment to acquiring WBD,” David Ellison said. “Our fully financed, all-cash offer of $30 per share continues to represent the superior option for maximising value for WBD shareholders.”
Unlike Netflix’s bid, Paramount’s proposal includes the acquisition of Warner Bros.’ cable television assets—such as CNN, TNT, TBS, and Discovery—which would be added to Paramount’s existing portfolio that includes CBS, MTV, and Comedy Central.
Trump weighs in
The battle for control of Warner Bros. Discovery—widely seen as a deal that could reshape Hollywood and the U.S. media landscape—has also attracted political attention. Former U.S. President Donald Trump has weighed in on the matter, warning that Netflix’s takeover “could be a problem” due to the market dominance it would create in the film and television industry.
The competing bids now place Warner Bros. Discovery shareholders at the centre of one of the most consequential media mergers in recent history.
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