Oracle cofounder Larry Ellison is raising the stakes in the battle for Hollywood’s future, personally intervening to salvage his son David Ellison’s hostile takeover bid for Warner Bros. Discovery. On Monday, David’s company, Paramount Skydance, announced the elder Ellison had provided an “irrevocable personal guarantee” of $40.4 billion to finance the deal, directly countering claims that the company’s funding was unreliable.
It’s the latest turn in the high-profile tug-of-war for Warner Bros. Discovery, one of the entertainment industry’s crown jewels. David Ellison, who became CEO of the newly merged Paramount Skydance in August, has been aggressively pursuing Warner Bros. with a $108 billion all-cash offer, which comes out to about $30 per share. However, WBD’s board rejected that proposal in favor of a rival agreement to sell its studio and streaming assets to Netflix for roughly $83 billion.
The board’s rejection hinged largely on skepticism regarding the Ellison family’s financing. Last week, WBD directors dismissed Paramount’s funding as “illusory,” citing concerns that the capital was tied to a “revocable family trust” that could be altered or withdrawn before the deal closed. Larry Ellison’s Monday filing was designed to silence those doubts.
“Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount,” the company said in a statement, adding that the tech tycoon has agreed “not to revoke the Ellison family trust (which has been operating for nearly 40 years as a counterparty to numerous transactions) or adversely transfer its assets during the pendency of the transaction.”
This massive personal commitment—roughly one-sixth of Larry Ellison’s $247.3 billion estimated net worth—effectively removes the WBD board’s primary defense against the takeover. To further sweeten the pot, Paramount raised its proposed breakup fee to $5.8 billion, matching the termination fee included in the rival Netflix offer.
David Ellison argued that his company’s bid remains the only path that preserves Warner Bros. Discovery as a whole entity, rather than selling it off in parts. Netflix’s planned acquisition would exclude WBD’s Global Networks division, which includes CNN and other cable-native brands, and which WBD had previously announced plans to spin off.
“Our $30 per share, fully financed all-cash offer was on Dec. 4th, and continues to be the superior option to maximize value for WBD shareholders,” David Ellison said in a statement Monday. “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.”
The market responded positively to the news, with Warner Bros. Discovery shares rising about 3% and Paramount ripping over 7% in early trading. The ball is now back in the court of the WBD board, which must decide whether to stick with Netflix or engage with a suitor who has just put $40 billion of personal wealth on the table to prove he is serious.
