Tech billionaire Larry Ellison has agreed to provide a personal guarantee of more than $40 billion for Paramount’s Skydance’s bid for the takeover of Warner Bros. Discovery. Paramount had launched a hostile takeover bid for WBD, following Netflix’s deal to buy WBD’s TV, film studios and streaming assets.
WBD urged shareholders to reject Paramount’s bid, and accused the company of having “consistently misled” investors by claiming its offer had a “full backstop” – a safety net to ensure it has sufficient funds – from the Ellisons, who control the company.
Larry Ellison, who is also the co-founder of tech giant Oracle, responded by agreeing to personally backstop $40.4 billion in equity financing for the proposed deal.
READ: Paramount, Comcast, and Netflix submit bids for Warner Bros. Discovery (
David Ellison, chairman and CEO of Paramount, and son of Larry, said: “Paramount has repeatedly demonstrated its commitment to acquiring WBD. Our $30 per share, fully financed all-cash offer was on December 4th, and continues to be, the superior option to maximize value for WBD shareholders. The Ellisons were facing scrutiny over how they are funding the bid, after a regulatory filing revealed it was backed by outside funders including Affinity Partners, an investment firm founded by Donald Trump’s son-in-law, Jared Kushner, Saudi Arabia’s Public Investment Fund, and the Qatar Investment Authority. Affinity Partners withdrew from the bid last week.
“I doubt many Warner Bros shareholders that are on the fence or planning to vote no were holding out due to issues with the revised bid addresses such as a guarantee from Larry Ellison on the funding front,” said Seth Shafer, principal analyst at S&P Global Market Intelligence Kagan.
For both Paramount and Netflix, winning shareholder support is only the first hurdle, as the deal is bound to face intense scrutiny. Lawmakers from both major parties have raised concerns about consolidation in the media industry, and President Donald Trump has said he plans to weigh in on the transactions.
A Paramount-Warner Bros. combination would create a studio larger than industry leader Disney and combine two major television operators. Some democratic senators say this move would give one company control over “almost everything Americans watch on TV.”
Meanwhile, a tie-up between Netflix and WBD would establish Netflix’s dominance in streaming, creating a group with a combined 428 million subscribers. Netflix has said it would honor Warner Bros.’ theatrical commitments and argued the deal would benefit consumers by lowering costs through bundled offerings.