In a dramatic escalation of the battle for control of Warner Bros Discovery (WBD), tech billionaire Larry Ellison has stepped in with a colossal personal financial guarantee to support Paramount's hostile takeover attempt.
The $40 Billion Backstop
The co-founder of Oracle has agreed to personally backstop $40.4 billion in equity financing for Paramount Skydance's proposed acquisition. This move, announced on Monday 21st January 2025, directly addresses criticisms from WBD's board, which had accused Paramount of misleading investors about the solidity of its funding.
WBD had previously urged its shareholders to reject Paramount's $108.4 billion all-cash offer, valuing the company at $30 per share. The board had labelled the bid "inadequate" and fraught with risk, especially after securing its own $82.7 billion deal with Netflix earlier in January. That agreement would see Netflix acquire WBD's storied movie studios, the HBO cable network, and the HBO Max streaming service.
A Clash of Corporate Visions
The two competing proposals represent starkly different futures for the media giant. Netflix's offer is for specific, high-value assets. In contrast, Paramount is bidding for the entirety of WBD, which includes iconic brands like CNN, Cartoon Network, and the Discovery Channel.
David Ellison, Chairman and CEO of Paramount and son of Larry, forcefully defended his company's position. "Our $30 per share, fully financed all-cash offer was on December 4th, and continues to be, the superior option to maximise value for WBD shareholders," he stated. He argued that Paramount's ownership would act as a catalyst for greater content production and theatrical output, preserving "an iconic Hollywood treasure."
Boardroom Battle Intensifies
Paramount's statement bluntly denied that the Netflix offer was superior and framed Ellison's unprecedented guarantee as a solution to WBD's "amorphous need for financial flexibility." This personal intervention from one of the world's wealthiest individuals significantly raises the stakes in the corporate standoff.
The WBD board now faces immense pressure to reconsider its rejection. With a $40.4 billion personal guarantee from Larry Ellison explicitly on the table, the question of financing security appears to have been decisively answered, shifting the debate squarely onto the strategic merits and price of the two competing visions for Warner Bros Discovery's future.
