Paramount Skydance Escalates War for Warner Bros. with $40.4 Billion Guarantee from Larry Ellison
Paramount Skydance has renewed its hostile takeover bid for Warner Bros. Discovery, bolstered by a $40.4 billion personal guarantee from Larry Ellison. The updated $30-per-share all-cash offer challenges the board's preference for Netflix, heating up the battle for the media giant.
In a dramatic intensification of the bidding war for one of Hollywood's most storied media conglomerates, Paramount Skydance has amended its hostile takeover offer for Warner Bros. Discovery (WBD). To address concerns regarding its financing, the company announced on (December 22, 2025) that billionaire Larry Ellison has personally guaranteed $40.4 billion in equity backing for the deal.
The Renewed Bid
Paramount Skydance, led by CEO David Ellison, has been aggressively pursuing WBD despite the board’s recent preference for a rival proposal from Netflix. The updated offer maintains the previous valuation of $30 per share in an all-cash deal, valuing Warner Bros. Discovery at approximately $108.4 billion.
The key differentiator in this renewed bid is the financial certainty provided by Larry Ellison, the co-founder of Oracle and David Ellison’s father. Previously, the WBD board had questioned the "full backstop" of the financing, describing it as ambiguous. In response, Paramount Skydance confirmed that Larry Ellison has provided an "irrevocable personal guarantee" for the equity portion of the financing.
Paramount Skydance stated that this move was designed to address WBD's stated concerns regarding the superior offer, specifically countering claims that the funding relied on opaque trust structures.
Clash of the Titans: Paramount vs. Netflix
This development complicates the landscape for Warner Bros. Discovery, whose board had formally rejected Paramount’s hostile bid on (December 17, 2025). The board had instead recommended a merger agreement with Netflix, valued at approximately $82.7 billion.
The two offers present starkly different futures for the company:
- Paramount Skydance Offer: A takeover of the entire company, including the Warner Bros. film and TV studios, HBO, and the linear cable networks (CNN, TNT, Discovery).
- Netflix Offer: A deal primarily for the studios and streaming assets (HBO/Max), leaving the fate of the linear networks less clear.
David Ellison argued that his company's proposal remains the better option for shareholders. "Our $30 per share, fully financed all-cash offer... continues to be the superior option to maximize value for WBD shareholders," Ellison said in a statement released on (December 22, 2025).
Financial Stakes and Market Reaction
The personal guarantee from Larry Ellison is one of the largest individual financial pledges in corporate history. The involvement of the Oracle chairman, who has a net worth estimated at over $240 billion, aims to eliminate any doubt regarding Paramount's ability to close the deal.
- Offer Price: $30.00 per share (All-Cash)
- Total Enterprise Value: ~$108.4 Billion
- Breakup Fee: Increased to $5.8 billion (matching Netflix's terms)
Paramount Skydance also extended the deadline for its tender offer to (January 21, 2026), giving WBD shareholders more time to weigh the guaranteed cash premium against the strategic merger proposed by Netflix. As the battle for control continues, the industry waits to see if the WBD board will reconsider its stance in light of the fortified financial backing.
