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Larry Ellison Offers $40 Billion Guarantee as Paramount Renews Bid for Warner Bros

By  |  December 22, 2025

Oracle co-founder Larry Ellison has moved to personally guarantee $40.4 billion in financing as Paramount and Skydance make a renewed push to acquire Warner Bros Discovery, a step aimed at countering a rival bid from streaming giant Netflix, according to Reuters.

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    The guarantee, disclosed in a regulatory filing on Monday, is designed to ease concerns among Warner Bros’ board about Paramount’s ability to fund the deal and the absence of full backing from the Ellison family. Those concerns had contributed to Warner Bros leaning toward Netflix’s competing cash-and-stock proposal, per Reuters. Following the disclosure, Warner Bros shares rose about 3%, while Paramount stock climbed more than 7%. Warner Bros and Netflix did not immediately respond to requests for comment.

    Paramount said the revised terms leave its $30-per-share all-cash offer unchanged, even as competition intensifies for control of Warner Bros’ extensive film and television library, which is seen as a strategic prize in the ongoing streaming wars. According to Reuters, ownership of those assets could significantly strengthen a buyer’s position as media companies race to scale their streaming platforms.

    Related: EU Weighs Potential Role as Competing Bids for Warner Bros. Discovery Intensify

    “I doubt many Warner Bros shareholders that are on the fence or planning to vote no were holding out due to issues the revised bid addresses such as a guarantee from Larry Ellison on the funding front,” said Seth Shafer, principal analyst at S&P Global.

    As part of the updated proposal, Ellison also agreed not to revoke the family trust or transfer its assets while the transaction is under review, the filing showed. Paramount additionally raised its regulatory reverse termination fee to $5.8 billion from $5 billion, matching the competing offer, and extended the expiration date of its tender offer to January 21, 2026, according to Reuters.

    The latest move follows Warner Bros’ earlier request that shareholders reject Paramount’s $108.4 billion bid for the entire company, including its cable television operations, citing doubts about financing and the lack of a comprehensive guarantee from the Ellison family. Still, some investors, including Harris Associates, Warner Bros’ fifth-largest shareholder, have indicated they would consider a revised Paramount offer if it improved its terms and addressed those concerns, per Reuters.

    Under the terms of Warner Bros’ existing agreement with Netflix, the studio would be required to pay a $2.8 billion breakup fee if it abandons that deal, highlighting the high financial stakes as the contest for one of Hollywood’s most valuable asset troves continues.

    Source: Reuters