Paramount Skydance escalated its pursuit of Warner Bros. Discovery (WBD) on Monday, submitting an amended all-cash acquisition offer. The proposal is bolstered by an irrevocable personal guarantee from Oracle co-founder Larry Ellison, who has pledged $40.4 billion in equity financing to secure the deal and cover potential damages.
Strengthening the Financial Foundation
This aggressive move by Paramount Skydance CEO David Ellison serves as a direct challenge to the rival acquisition bid from streaming giant Netflix. While Paramount’s previous overtures were dismissed by the WBD board due to concerns over financing stability, the addition of Larry Ellison’s personal backing is designed to eliminate ambiguity.
According to a formal press release, the $40.4 billion guarantee ensures that the required capital is locked in, directly addressing the WBD board’s earlier skepticism regarding the feasibility of the $108.4 billion proposal.
The Battle Against the Netflix Deal
The landscape of the media industry remains in flux following the December 5 announcement of a Netflix-WBD merger. That agreement, valued at $82.7 billion, proposed a cash-and-stock structure at $27.75 per share.
WBD’s board previously rejected Paramount’s $30-per-share hostile bid, labeling it “illusory” and citing a lack of enforceable financing commitments. The board maintained that the Netflix deal was superior due to its binding nature and robust debt commitments, which required no additional equity fundraising.
Strategic Intent and Market Impact
Paramount’s latest filing aims to dismantle the narrative that its offer is speculative. The company asserts that its $30-per-share, fully financed cash offer remains the most lucrative path for WBD shareholders.
David Ellison’s Vision for WBD
Addressing the ongoing tension, David Ellison emphasized the long-term strategic value of the merger:
“Our offer continues to be the superior option to maximize value for WBD shareholders. Because of our commitment to investment and growth, our acquisition will be a catalyst for greater content production, increased theatrical output, and expanded consumer choice.”
With a history of at least three prior rejected offers—as reported by CNBC in October—Paramount is signaling that it does not intend to exit the bidding process quietly. The company has formally called on the WBD board to re-evaluate the proposal and prioritize the higher valuation offered by the Skydance-backed bid.