Ellison Puts $40B on the Line in Paramount's WBD Bid
Larry Ellison personally guarantees $40.4 billion to back Paramount's $108B hostile offer for Warner Bros. Discovery, escalating the fight against Netflix.
Larry Ellison just made this personal.
The Oracle co-founder agreed to an "irrevocable personal guarantee" of $40.4 billion to back Paramount Skydance's $108 billion hostile bid for Warner Bros. Discovery. The move is a direct response to WBD Chairman Samuel Di Piazza's public skepticism about whether Ellison would actually show up at closing. "Doing a deal is great; closing a deal is better," Di Piazza told CNBC last week.
Message received.
The Amended Offer
Paramount is offering $30 per share in cash for WBD—a straightforward proposal that would give shareholders liquidity without the execution risk of Netflix's studio spin-off. The amended terms also bump the breakup fee to $5.8 billion from $5 billion, matching what Netflix promised if their deal falls through.
The financing stack remains unusual. Saudi Arabia, Qatar, and Abu Dhabi's royal families are providing significant capital alongside Ellison. WBD's board has questioned why one of the world's richest people needs sovereign wealth backing, but the personal guarantee answers the more pressing concern: whether he's truly committed.
Netflix's Position
WBD's board rejected Paramount's offer on December 17, recommending shareholders stick with Netflix's $83 billion deal. Under that arrangement, Netflix would acquire Warner Bros.'s TV and film studios, HBO, HBO Max, and the games division. CNN and the cable channels would remain with WBD shareholders in a separate entity.
The strategic logic for Netflix is clear—they'd get premier content production capabilities and HBO's prestige brand. For WBD shareholders, the question is whether that upside justifies the complexity.
The Timeline
WBD shareholders have until January 21 to tender their shares to Paramount. The board said it will "carefully review and consider" the amended offer in consultation with independent advisors.
WBD shares rose 3% on the news Monday. Paramount is betting that cash-in-hand beats a complicated media restructuring—especially with Ellison's personal fortune now explicitly on the line.