Oracle co-founder Larry Ellison has stepped in to personally guarantee more than $40bn in financing for Paramount Skydance’s hostile $78bn bid for Warner Bros. Discovery. The move follows open scepticism from WBD’s board over whether the offer was fully funded and capable of closing. By putting his own wealth on the line, Ellison aims to remove those doubts while reinforcing the high-stakes family dynamic behind the takeover led by his son, David Ellison.
Larry Ellison steps in to silence Warner Bros’ funding doubts
WBD’s board has repeatedly argued that Paramount’s offer relied too heavily on external investors and lacked certainty of financing. In takeover situations, boards are legally required to assess not just the headline price but the likelihood that a deal will actually close. WBD described the original funding structure as unreliable, giving it grounds to favour a rival proposal with clearer financial backing.Larry Ellison’s guarantee covers $40.4bn of the equity financing, effectively backstopping the transaction if other investors fall short. Paramount has also agreed to greater transparency around the Ellison family trust and confirmed the Oracle shareholdings underpinning the financing. Together, these steps are intended to neutralise WBD’s claims that the bid’s funding was uncertain.
Paramount versus Netflix
Paramount is offering $30 per share for the entire company, including cable assets such as CNN. That contrasts with an $83bn agreement between WBD and Netflix, which offers a lower per-share price of about $27.75 but excludes WBD’s cable networks, which would be spun off. WBD maintains that the Netflix deal delivers greater overall value once those assets are separated.
A hostile bid raises the pressure
Because Paramount’s approach is hostile, it bypasses WBD management and appeals directly to shareholders. To further strengthen its hand, Paramount has increased its break-up fee to $5.8bn, matching the penalty Netflix would pay if its deal collapsed. The changes are designed to make it harder for WBD’s board to dismiss the bid on financing grounds alone.While family guarantees are common in private business, they are rare at this scale. Larry Ellison, one of the world’s richest individuals, is effectively vouching for his son’s strategy by placing his personal fortune behind the deal. The move signals just how determined Paramount is to force serious engagement from WBD’s board and shareholders.
What happens next
WBD’s board is expected to formally respond to the revised offer. Even if directors remain opposed, the strengthened financing could encourage shareholders to challenge the board’s recommendation. Markets reacted positively to the escalation, with WBD shares rising as investors weighed the increased likelihood of a bidding showdown.Whether the personal guarantee is enough to overturn board resistance remains uncertain. What is clear is that Paramount has now gone all in, turning the takeover battle into a test of funding certainty, shareholder confidence and the power of a father’s guarantee.