Paramount Skydance Corporation has updated its all-cash offer for Warner Bros. Discovery to include an irrevocable personal guarantee from Larry Ellison.
The founder of Oracle and controlling shareholder of Paramount (and father of Paramount CEO David 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.
WBD, in favoring Netflix’s offer to acquire Warner Bros. following the spin-off of Discovery Global, has asserted that the full equity backstop from the Ellison family trust is inadequate.
In addition to the irrevocable personal guarantee, Ellison has agreed not to revoke the family trust or adversely transfer its assets during the transaction. Paramount has published records to confirm that the Ellison family trust owns approximately 1.16 billion shares of Oracle common stock. It also promises improved flexibility and a higher reverse termination fee of $5.8 billion. The offer is conditioned upon WBD retaining its global networks business.
David Ellison, chairman and CEO of Paramount, remarked, “Paramount has repeatedly demonstrated its commitment to acquiring WBD. Our $30 per share, fully financed all-cash offer was on December 4th, 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, as a catalyst for greater content production, greater theatrical output, and more consumer choice. 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 expiration date of the tender offer has been extended to 5 p.m. (NYC) on January 21. As of December 19, 2025, 397,252 shares had been tendered.
