Paramount Skydance Corporation has intensified its efforts to acquire Warner Bros. Discovery by amending its hostile takeover bid. This updated proposal includes a significant personal guarantee from tech billionaire Larry Ellison, aiming to strengthen Paramount’s position against competing offers.
Earlier in December, Warner Bros. Discovery announced that Netflix had secured the winning bid for the company, estimated at approximately $82.7 billion. Should the deal proceed, Netflix would gain control over Warner Bros.’ extensive portfolio, including renowned franchises such as DC Comics, Harry Potter, and Game of Thrones. Netflix has committed to continuing Warner Bros.’ theatrical slate, which features upcoming projects like Supergirl, set for release in 2026, and Man of Tomorrow in 2027.
In response, Paramount has made strategic adjustments to its offer, maintaining a valuation of $30 per share for all assets and liabilities associated with Warner Bros. Discovery. The total value of Paramount’s bid now stands at $108 billion.
According to a press release from Paramount, Larry Ellison, founder of Oracle and a major stakeholder, has pledged an irrevocable personal guarantee of $40.4 billion for the equity financing linked to the offer. This guarantee also covers any potential damages claims against Paramount. The company has also raised its breakup fee from $5 billion to $5.8 billion and extended the offer’s expiration date to January 21, 2026.
David Ellison, newly appointed CEO of Paramount Skydance, emphasized the company’s unwavering commitment to acquiring Warner Bros. Discovery. In a statement, he said, “Our $30 per share, fully financed all-cash offer was on December 4, and continues to be, the superior option to maximize value for WBD shareholders.” He urged Warner Bros. Discovery’s board of directors to act in favor of this lucrative transaction, which he believes would protect and enhance a landmark Hollywood entity for future generations.
As the bidding war unfolds, stakeholders from both companies are closely monitoring developments. With Paramount’s enhanced offer, the future of Warner Bros. Discovery remains a critical point of contention in the competitive landscape of entertainment and media.
