Larry Ellison personally guarantees $40.4 billion in Paramount's bid for Warner Bros. Discovery
Oracle billionaire Larry Ellison provides personal guarantee for Paramount's $108.4 billion hostile takeover attempt of Warner Bros. Discovery, addressing board concerns.
December 22, 2025 - 11:10 AM ET • 2 min read
Paramount Skydance announced Monday that Larry Ellison, Oracle co-founder and father of Paramount CEO David Ellison, is personally guaranteeing $40.4 billion in equity financing for the company's bid to acquire Warner Bros. Discovery.
The personal guarantee is structured as an irrevocable commitment. Ellison has also agreed not to revoke the Ellison family trust or adversely transfer its assets during the pending transaction, according to Paramount's announcement.
Paramount's offer values Warner Bros. Discovery at $108.4 billion, or $30 per share in all cash. The company said it remains prepared to acquire 100 percent of Warner Bros. Discovery's outstanding shares and would assume all of the company's assets and liabilities under the revised proposal.
The amended bid directly addresses concerns raised by Warner Bros. Discovery's board of directors. Last week, the board rejected Paramount's original offer and recommended shareholders reject it as well. Among the board's stated concerns was the lack of a personal guarantee from the Ellison family, with the board arguing that the Ellison family trust alone was insufficient backing for the deal.
Warner Bros. Discovery's board has instead backed an $82.7 billion agreement to sell a large portion of its business to Netflix. The board stated that Netflix's offer provided a better deal for shareholders than Paramount's bid. Warner Bros. Discovery also accused Paramount of having "consistently misled" investors by claiming its offer had a "full backstop" without adequate financial assurances from the Ellisons.
Paramount characterized the personal guarantee as addressing Warner Bros. Discovery's "amorphous need" for financial flexibility. The company said Ellison's irrevocable commitment represents a concrete financial safeguard for the transaction. Their revised offer comes days after the Warner Bros. Discovery board formally rejected the company's initial bid in favor of the Netflix agreement.