Paramount Adds Personal Guarantee From Larry Ellison in Revised Warner Bros Discovery Bid
Paramount Skydance amended its hostile takeover bid for Warner Bros Discovery on Monday, December 22, 2025. According to CNBC, Oracle co-founder Larry Ellison will provide an irrevocable personal guarantee of $40.4 billion in equity financing. The move directly addresses concerns raised by Warner Bros Discovery's board of directors about the proposed transaction.
Warner Bros Discovery's board previously rejected Paramount's offer multiple times. The board questioned whether Larry Ellison would honor his financing commitments at closing. Paramount maintains its offer of $30 per share in cash for all outstanding shares. The company also increased its breakup fee to $5.8 billion, matching Netflix's promised payment if its competing deal fails regulatory approval.
Stakes in Hollywood's Biggest Takeover Battle
Warner Bros Discovery already agreed to sell its studio and streaming assets to Netflix for roughly $83 billion in enterprise value. CNN reports that Netflix's deal values shares at $27.75 each but includes spinning off WBD's cable networks into a separate company called Discovery Global. Paramount argues its all-cash offer provides more value and certainty for shareholders.
The amended Paramount bid includes additional protections beyond the personal guarantee. Larry Ellison agreed not to revoke his family trust during the transaction period. Paramount published records confirming the Ellison family trust owns approximately 1.16 billion Oracle shares. Warner Bros Discovery's board confirmed receipt of the amended offer and stated it will review the proposal carefully.
Media Consolidation Raises Regulatory Questions
Both proposed transactions face regulatory scrutiny that could delay or prevent completion. President Donald Trump stated the Netflix deal could pose market share problems. According to Variety, the Department of Justice will likely review either merger for antitrust concerns. Netflix holds approximately 18 percent of the U.S. streaming market while HBO Max holds 13 percent based on subscriber counts.
Senator Elizabeth Warren raised concerns that either deal would reduce competition in the entertainment industry. Antitrust experts note that combining Netflix with HBO Max would create a platform with over 400 million global subscribers. Paramount counters that its acquisition would face fewer regulatory hurdles. The company points to Netflix's dominant position and argues a combined Netflix-HBO Max would control excessive market power.
Industry analysts question whether regulators will approve major streaming consolidation. European Union competition authorities will also review any completed transaction. The European Commission historically imposes conditions on large media mergers rather than blocking them outright. Warner Bros Discovery shareholders have until January 21, 2026 to tender their shares to Paramount's offer.
Further Reading
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