Larry Ellison Steps In With a $40 Billion Personal Guarantee in Paramount’s Bold Media Play
Right now, one of the most dramatic takeover battles in the media world is unfolding, and Larry Ellison has placed himself squarely at the center of it. Paramount has dramatically escalated its hostile bid to buy Warner Bros. Discovery by announcing that Ellison, the Oracle co-founder and one of the richest people on the planet, will personally guarantee more than $40 billion to back the deal. That move alone has sent a clear message: this offer is not bluffing, and it is not going away quietly.
The situation has already been tense. Warner Bros. Discovery’s board has repeatedly rejected Paramount’s proposal, saying it prefers a rival offer from Netflix, which it believes delivers better long-term value. Paramount, however, has been accused by the WBD board of misrepresenting its financing, even calling the proposed funding “illusory.” Those accusations appear to have triggered this latest response.
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To silence doubts, it was revealed that Larry Ellison, who also happens to be the father of Paramount CEO David Ellison, will personally guarantee the full $40.4 billion equity portion of the financing for the $78 billion transaction. That is no small promise. If something were to collapse, Ellison would be exposed to a potential loss that represents a sizable chunk of his estimated $250 billion net worth. Still, the guarantee has been presented as ironclad reassurance that the money is real and available.
Further steps were taken to strengthen Paramount’s credibility. Ellison has agreed not to revoke his family trust, a move that removes uncertainty around how the deal would be financed. Financial records have also been released to show that the trust holds more than 1.1 billion Oracle shares, directly addressing concerns raised by Warner Bros. Discovery’s board about the source of funds. On top of that, Paramount increased its breakup fee to $5.8 billion, matching what Netflix has promised if its deal were to fall apart.
Interestingly, the headline numbers of the offer have not changed. Paramount is still offering $30 per share for Warner Bros. Discovery, while Netflix is offering $27.75 per share. The disagreement lies in strategy. Netflix and WBD argue that spinning off cable assets like CNN would unlock greater overall value, even if the upfront price looks lower.
Now, the ball is back in Warner Bros. Discovery’s court. The board is expected to respond, though it is far from guaranteed that this revised offer will be accepted. Shareholders, however, may play a decisive role, especially given the hostile nature of the bid. With markets reacting positively and Larry Ellison’s personal fortune now tied directly to the outcome, this showdown has become one of the most high-stakes media deals in recent history.
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