Paramount Skydance has escalated its bid to acquire Warner Bros Discovery by submitting an amended all-cash offer backed by a personal financing guarantee from Oracle founder Larry Ellison, intensifying a takeover battle that now pits the studio owner against a rival deal already agreed with Netflix.
Revised Offer Adds Personal Financing Guarantee
Paramount Skydance said Monday that its revised proposal includes an “irrevocable personal guarantee” from Larry Ellison covering $40.4 billion in equity financing, as well as any damages claims related to the transaction.
In a press release, Paramount said the equity financing itself had already been part of its earlier offer, but Ellison’s personal guarantee was newly added to strengthen the bid and address concerns raised by Warner Bros Discovery’s board.
The amended offer is being led by David Ellison, who is seeking to overturn a competing deal backed by Netflix.
Background Of The Competing Bids
The revised proposal comes one week after the board of Warner Bros Discovery rejected Paramount’s initial bid and instead favored a previously announced agreement with Netflix.
That Netflix deal, disclosed on December 5, values Warner Bros Discovery at an enterprise value of $82.7 billion and offers shareholders a mix of cash and stock worth $27.75 per share.
Three days after the Netflix agreement was made public, Paramount launched a hostile all-cash offer valued at $108.4 billion, or $30 per share. Warner Bros Discovery’s board rejected that bid, describing it as “illusory” and stating that Paramount had misrepresented the certainty of its financing.
At the time, the board said the Netflix transaction was a binding agreement with enforceable commitments, requiring no equity financing and supported by firm debt arrangements.
Paramount’s Response To Board Concerns
Paramount said the amended offer was structured specifically to address the concerns outlined by the Warner Bros Discovery board. The company said the addition of Larry Ellison’s personal guarantee directly responds to questions about the reliability and source of the equity financing.
CNBC reported in October that Warner Bros Discovery had already turned down three separate takeover approaches from Paramount prior to finalizing the Netflix deal.
Ellison And Paramount Push Shareholder Value Case
In Monday’s statement, David Ellison said Paramount’s $30 per share offer, first made on December 4, remains the superior proposal for Warner Bros Discovery shareholders.
He said the bid is fully financed, all-cash, and designed to maximize shareholder value, while also supporting increased investment in content production, theatrical releases, and consumer choice.
Ellison said Paramount expects Warner Bros Discovery’s board to reconsider the offer and take steps to preserve and strengthen the studio’s long-term future.
The Warner Bros Discovery board has not publicly responded to the amended proposal.
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