Paramount Skydance gets Larry Ellison's guarantee for Warner Bros. Discovery deal

Larry Ellison | Photo Credit: WIKIMEDIA COMMONS

Paramount Skydance, a media and entertainment company, has amended its all-cash takeover offer for Warner Bros. Discovery (WBD), addressing concerns raised by WBD's board by securing a personal financial guarantee from billionaire Larry Ellison.

In a statement, Paramount said Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion. It stated "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". This move directly responds to questions raised by WBD directors about the financial backing behind the proposal.

Paramount Skydance Corporation has reaffirmed its offer to acquire 100 per cent of WBD's outstanding shares at $30 per share in cash. If completed, Paramount would assume all assets and liabilities of Warner Bros. Discovery, making it a full takeover.

Earlier, WBD had argued in its Schedule 14D-9 filing that the equity backstop from the Ellison family trust was inadequate. The trust holds a majority of the assets of Larry Ellison, who is also the founder of Oracle and the controlling shareholder of Paramount.

WBD stated that only a personal guarantee from Ellison would resolve its concerns, a demand Paramount said was never raised during the 12 weeks before WBD agreed to what it described as an inferior transaction with Netflix. Paramount also questioned WBD's disclosures, noting that its filing does not explain the financial analysis used by the board to select the Netflix offer.

It said the filing omits details on the valuation of the Global Networks stub equity, which Paramount values at $1 per share, and lacks clarity on debt-related adjustments under the Netflix deal. The issue centres on transparency and value for shareholders. Paramount argues that WBD investors do not have enough information to properly compare the two offers.

So this highlights that the Paramount Skydance is currently pursuing a takeover of Warner Bros. Discovery (WBD) through an all-cash offer. To strengthen this bid, Larry Ellison has provided a personal financial guarantee, showing that the combined group has sufficient funding to complete the deal.

Published on December 23, 2025