Larry Ellison Pledges Eye-Watering Sum to Back Warner Bros. Discovery Bid

Paramount Skydance is trying to strengthen its $108 billion hostile bid for Warner Bros. Discovery by securing an “irrevocable personal guarantee” of $40.4 billion from Oracle co-founder Larry Ellison, according to a statement from the company.

The move is meant to reassure WBD shareholders that Paramount’s all-cash offer is fully backed and ready to compete with Netflix’s existing deal.

Paramount, led by chairman and CEO David Ellison, Larry Ellison’s son, also increased its breakup fee to match Netflix’s $5.8 billion.

This fee would be paid to WBD if Paramount’s deal fails to get regulatory approval. Paramount continues to offer $30 per share in cash for all WBD shares, covering the company’s assets and liabilities.

Larry Ellison, who is worth nearly $243 billion, previously helped finance Skydance Media’s $8 billion takeover of Paramount Global, which closed in August.

Paramount’s bid is also supported by sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, as first reported by Variety. These funds collectively committed $24 billion to the deal but agreed to forgo any governance rights to avoid national security concerns. Affinity Partners, the investment firm led by Jared Kushner, recently withdrew from the offer.

David Ellison said in a statement Monday: “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. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater theatrical output, and more consumer choice. We expect the board of directors of WBD to take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future.”

WBD’s board officially rejected Paramount’s bid on December 17, recommending that shareholders stick with its $83 billion agreement with Netflix. The board claimed that Paramount previously misled shareholders by suggesting the Ellison family fully backed the deal, calling earlier commitments “unknown and opaque.” WBD said a personal guarantee from Larry Ellison was necessary for certainty.

Paramount responded by providing the guarantee, confirming trust assets, and offering greater flexibility on WBD debt refinancing. The company also matched Netflix’s regulatory termination fee. Paramount’s subsidiary, Prince Sub Inc., extended the expiration of its tender offer to January 21, 2026, giving shareholders more time to consider the proposal.

Paramount has set up a website, strongerhollywood.com, with updates on its WBD offer, while Netflix’s site, netflixwbtogether.com, provides information about its deal with Warner Bros.

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