Paramount renews bid for Warner Bros, ensuring $40B Larry Ellison backing

The battle over the future of Warner Bros. Discovery continues, as Paramount and Skydance announced Monday that they have submitted an amended all-cash offer for the storied movie studio. The revised bid includes an “irrevocable personal guarantee” from a key backer, Larry Ellison, committing tens of billions of dollars in equity financing to support the transaction.

The move marks the latest escalation by Ellison’s son, David Ellison, the CEO of Paramount Skydance, as he attempts to wrest a potential acquisition away from rival bidder Netflix.

“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,” a Paramount press release issued Monday stated. While thuity financing was a part of Paramount’s earlier proposal, the company said the elder Ellison’s personal guarantee represents a new and significant addition.

The updated offer arrives just one week after the Warner Bros. Discovery board rejected Paramount’s initial bid and opted instead to proceed with a previously announced agreement with Netflix. That deal, revealed on December 5, detailed Netflix’s plan to acquire the studio through a mix of cash and stock valued at $27.75 per WBD share, implying a total enterprise value of $82.7 billion.

Three days after Netflix’s agreement became public, Paramount launched a hostile takeover bid valued at $108.4 billion, offering $30 per share. The WBD board rejected the proposal, calling it an illusory” and accusing Paramount of misleading shareholders about the certainty of its financing. At the time, they emphasized that the Netflix transaction was “a binding agreement with enforceable commitments,” requiring no additional equity financing and backed by firm debt arrangements.

Paramount now says its revised offer is structured to address those concerns directly. In a statement, the company said the amended bid was designed to “address WBD’s stated concerns regarding Paramount’s superior offer.” In October, CNBC reported that before striking a deal with Netflix, Warner Bros. Discovery had rejected three takeover proposals from Paramount.

“Paramount has repeatedly demonstrated its commitment to acquiring WBD,” David Ellison said in Monday’s release. “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. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, serving as a catalyst for greater content production, increased theatrical output, and more consumer choice.”

Ellison added that he expects the Warner Bros. Discovery board “to take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future.”