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Larry Ellison Paramount Skydance: Oracle co-founder Larry Ellison has stepped forward with a personal guarantee of $40.4 billion in equity financing to support Paramount Skydance’s $108.4 billion all-cash offer for Warner Bros Discovery, a regulatory filing showed Monday.
The move is designed to reinforce the credibility of the bid’s funding.
Warner Bros Discovery’s board had previously expressed reservations about the financing plan.
Those concerns focused on the absence of comprehensive backing from the Ellison family.
As a result, the board had leaned toward a competing cash-and-stock proposal involving Netflix.
Ellison’s direct financial commitment is expected to ease those doubts as Paramount Skydance pushes to keep its takeover proposal on track.
Paramount said the updated agreement does not alter its $30-per-share all-cash proposal.
Shares of Warner Bros Discovery rose nearly 4% in premarket trading after the disclosure. Paramount Skydance stock gained roughly 3%.
Neither Warner Bros Discovery nor Netflix immediately responded to media inquiries. The fight for one of Hollywood’s most valuable collections of film and television assets remains unresolved.
Industry executives see the deal as a turning point in the streaming race.
Securing a vast and proven content library could provide a lasting competitive advantage as platforms battle for global audiences.
Paramount is still operating under mounting pressure as it attempts to stay relevant in the high-stakes bidding process, analysts said.
Paolo Pescatore of PP Foresight said the company is making a final effort to avoid being pushed to the sidelines.
He noted that while the enhanced proposal signals progress, it is unlikely to be decisive. Regulatory filings also outline additional assurances tied to the revised terms.
Larry Ellison has committed to keeping the family trust intact and refraining from shifting its assets for the duration of the deal review.
The measure is aimed at reinforcing confidence in the stability of the transaction’s financial backing.
Paramount said it has lifted its regulatory reverse termination fee to $5.8 billion from $5 billion, bringing it in line with a competing deal.
The company also pushed the expiration of its tender offer to January 21, 2026.
The changes come after Warner Bros Discovery asked shareholders to turn down Paramount’s $108.4 billion bid for the entire business, including its cable television operations.
Warner Bros Discovery cited doubts over the certainty of the financing and the lack of a full guarantee from the Ellison family.
Not all investors have closed the door on Paramount.
Several shareholders, including the fifth-largest holder Harris Associates, said they would consider an improved proposal if Paramount presents a stronger offer and resolves concerns around the transaction terms.
REGULATORY SCRUTINY AHEAD
Gaining the backing of shareholders would represent just the first challenge for either bidder.
Both takeover proposals are likely to encounter close antitrust examination in the United States and across Europe.
Bipartisan concern has been growing in Washington over consolidation within the media industry.
U.S. President Donald Trump has said he plans to take a position on the transactions. Regulatory approval is expected to be complex and closely watched by policymakers.
A merger between Paramount and Warner Bros Discovery would result in a studio surpassing Disney in size.
The deal would also combine two of the country’s largest television networks.
Several Democratic senators have raised concerns about the potential impact on competition.
They say the merger could give a single company control over the vast majority of TV content watched by Americans. Such warnings are likely to play a key role in the regulatory review process.
A deal between Netflix and Warner Bros Discovery would further strengthen Netflix’s position in the streaming industry.
Together, the combined service would reach around 428 million subscribers globally.
Netflix has committed to honoring Warner Bros’ existing theatrical release obligations.
The company also argued that the merger could lower costs for consumers through bundled offerings.
Co-CEO Ted Sarandos expressed confidence that the transaction would gain regulatory approval.
He added that the deal could protect jobs in the film and television sector already grappling with inconsistent box-office performance.
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