Paramount Boosts Its Bid for Warner Bros. with Major Backing from Larry Ellison

Despite Netflix’s recent agreement with Warner Bros. Discovery, Paramount isn’t backing down from its pursuit of the media giant, opting to appeal directly to shareholders. In a bold move, Paramount has enhanced its offer, now featuring an “irrevocable personal guarantee” of $40.4 billion from Larry Ellison, the billionaire Oracle founder and father of Paramount’s CEO, David Ellison. Additionally, Paramount has pledged to match Netflix’s breakup fee of $5.8 billion should regulatory hurdles derail the deal, up from its previous $5 billion offer.

Paramount’s revised proposal also introduces “further improved flexibility” for WBD regarding debt refinancing, representations, and interim operating covenants. To bolster confidence, the updated offer includes documentation showing that the Ellison family trust holds 1.16 billion shares of Oracle stock, aiming to reassure WBD shareholders of their ability to finance the proposed $40.4 billion as part of a total $108 billion all-cash offer. Paramount is offering $30 per share for WBD, surpassing Netflix’s $27.75 per share for select assets, which totals $82.7 billion and includes its film, TV, and gaming divisions.

In light of this new proposal, Paramount has extended the expiration date of its offer to January 21, 2026. While WBD previously urged its shareholders to reject Paramount’s earlier bid, it remains uncertain whether that position will change with this latest offer. Netflix has claimed its deal provides “more choice and greater value for consumers” and will “strengthen the entertainment industry.” Co-CEO Ted Sarandos has assured that Netflix will continue to distribute WBD’s films in theaters, though skepticism remains.

Paramount aims to acquire the entirety of WBD and has committed to maintaining theatrical releases. Notably, both Sarandos and the Ellisons have met with former President Donald Trump, and Jared Kushner was initially involved in Paramount’s takeover attempt through Affinity Partners but later withdrew. The gaming aspect is significant, as the acquiring company could gain control over WBD’s extensive gaming division, which includes numerous franchises and studios. However, the possibility of a deal falling through remains, with concerns about media consolidation’s impact on consumers being voiced by figures like Senator Elizabeth Warren (D-MA).