Paramount has just turned up the heat in its battle for Warner Bros Discovery.
In a move designed to address shareholder concerns, Larry Ellison, father of Paramount CEO David Ellison, has pledged a personal $40 billion guarantee to back the $108 billion takeover offer.
A regulatory filing released Monday confirmed the high-stakes commitment.
The guarantee replaces an earlier equity commitment that relied on a vague and revocable trust, which had been a sticking point for Warner Bros Discovery’s board last week when shareholders voted to reject the deal.
From Revocable Trust to Irrevocable Guarantee
Previously, Paramount’s equity commitment lacked what the board considered a “full backstop” from the Ellison family.
The new filing clarifies that Larry Ellison’s $40 billion pledge is now irrevocable, personally ensuring the deal’s funding.
The billionaire’s fortune, estimated at $240 billion, now serves as a robust guarantee instead of a discretionary trust.
Paramount emphasized that the Ellison family trust holds over 1.16 billion shares of Oracle stock and that all material liabilities are publicly disclosed, countering prior criticisms of opacity.
The firm framed this as evidence that the bid is fully secured and reliable.
Warner Bros Discovery Board Response Pending
With the upgraded bid on the table, Warner Bros Discovery is expected to weigh its options.
Sources tell The New York Post that a formal response could come later today.
Paramount is giving shareholders until January 21 to tender their shares, signaling a sense of urgency to finalize the deal.
The offer still values Warner at $30 per share, totaling $108.4 billion, well above Netflix’s competing bid of $82.7 billion.
However, Netflix’s offer is structured as a mix of cash and stock and covers only Warner’s studio and streaming assets, whereas Paramount is pursuing the full portfolio—including cable properties like CNN.
Larry Ellison’s Influence and Potential Changes
Larry Ellison, a well-known Trump ally, has reportedly considered reshaping CNN programming if Paramount acquires Warner.
This could include major personnel shifts and even altering prime-time content, according to previous reports in The Guardian.
Meanwhile, David Ellison, in his first speech as Paramount CEO, outlined ambitious plans to revitalize the studio’s franchise slate, signaling a desire to restore Paramount to its former Hollywood glory.
Paramount Positions Offer as Superior Option
David Ellison reaffirmed Monday that Paramount’s bid remains the “superior option to maximize value” for Warner shareholders.
He also hinted that the offer could increase, stressing the company is not yet at its “best and final” proposal.
Despite Paramount’s new assurances, Warner Bros Discovery CEO David Zaslav has already leaned toward Netflix’s bid, publicly touring facilities with Netflix co-CEOs Greg Peters and Ted Sarandos while formally rejecting Paramount’s previous offer.
The Battle for Warner Bros Discovery Heats Up
The high-profile showdown between Paramount and Netflix continues to intensify.
With Larry Ellison’s personal guarantee now in play, Paramount has strengthened its hand, but questions remain over whether Warner’s board and shareholders will be swayed to accept the revitalized offer.
One thing is certain: the final weeks leading up to January 21 are set to be a dramatic conclusion to one of the most expensive media bidding wars in recent history.
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