Oracle's Larry Ellison pledges $40.4 billion personal guarantee to Paramount’s bid for Warner Bros.

Paramount Global has intensified its hostile takeover pursuit of Warner Bros. Discovery by securing an irrevocable personal guarantee of $40.4 billion from Oracle co-founder Larry Ellison. The amended proposal, announced on Monday, 22nd December, aims to address specific concerns regarding the certainty of financing that previously led the WBD board to favour a competing offer from Netflix.

The renewed bid maintains a valuation of $30 per share in an all-cash transaction, totalling approximately $108.4 billion including debt. This offer stands in direct competition with a $82.7 billion agreement reached earlier this month between WBD and Netflix. Whilst the Netflix deal focuses on acquiring WBD’s film and television studios and streaming assets, Paramount’s proposal seeks a total acquisition of the corporation, including its linear networks such as CNN, Cartoon Network, and the Discovery Channel.

To satisfy the WBD board’s request for financial transparency, Paramount has published records confirming that the Ellison family trust holds 1.16 billion shares of Oracle common stock. Furthermore, Larry Ellison has committed not to revoke the trust or transfer its assets during the pendency of the transaction. Paramount has also matched Netflix’s regulatory reverse termination fee by increasing its own penalty to $5.8 billion, should the deal fail to clear antitrust hurdles.

David Ellison, CEO of Paramount Skydance and son of Larry Ellison, described the proposal as the superior option to maximise shareholder value and serve as a catalyst for greater content production. Despite these assurances, the WBD board has previously characterised the bid as "illusory" and recommended that shareholders support the Netflix transaction.

The consolidation of these media giants faces significant regulatory scrutiny in the United States and Europe. Critics suggest such a merger could give a single entity disproportionate control over the American television landscape. Shareholders are expected to vote on the competing proposals in early 2026, with the current tender offer extended until 21 January.