Paramount Skydance has retooled its takeover attack for Warner Bros. Discovery (WBD), adding fresh sizzle to a high-stakes corporate fight against rival suitor Netflix. The new offer is based on an irrevocable personal guarantee of $40.4 billion from Oracle’s co-founder Larry Ellison, according to two people close to the matter who were not authorized to speak about it publicly — a validation that seeks to allay lingering doubts regarding how well Paramount has been backed financially as it bids for one of Hollywood’s most sought-after entertainment companies.
The move is part of a broader strategy by Warner Bros. Discovery’s board had earlier spurned Paramount’s initial bid in favor of a rival offer for the studio and streaming assets from Netflix. While Paramount was unable to obtain those assurances, it has resurfaced with new guarantees intended to woo skeptical shareholders and garner support for a battle against Warner.
Larry Ellison’s Personal Financial Commitment
At the centre of Paramount’s new tactic is Ellison’s personal $40.4 billion equity funding commitment – which he is now using to support a company bid for WBD that offers $30 per share in cash. In offering to personally back the equity piece and any potential liability claims, Ellison hopes to assuage fears that Paramount’s previous offer relied too heavily on a revocable family trust that Warner’s board viewed as less secure.
In a statement, David Ellison — Larry’s son and the CEO of Paramount — countered that the updated bid is “the far superior value maximizing solution for WBD shareholders” as it would provide significant investment in content, additional production capacity and expanded consumer choice once completed.
Paramount also upped its reverse termination fee, a regulatory penalty for calling off the deal, to $5.8 billion — equaling the breakup fee included in Netflix’s offer – and Ellison promised the move into theaters and TV would be supported with his own guarantee. The firm also extended the tender offer deadline to Jan. 21, 2026, and recommended that shareholders wait until then to decide whether to accept the sweeter terms.
Ongoing Competition With Netflix
The renewed bid further ramps up the ongoing battle between Paramount and Netflix over WBD’s vast media library — a title that might help transform the larger streaming industry. Netflix had already signed a licensing deal with Warner Bros. Discovery to buy its studio and streaming operations in a major cash-and-stock deal, a transaction that Warner’s board publicly endorsed. Its bid — which was lower on a per-share basis, but had strong financing commitments and solid debt arrangements that attracted Warner leadership — bested others that Netflix may have run into as competition if it pursued an acquisition.
Overall, Paramount’s total proposed valuation for WBD remains higher, as it covers all assets of the company, not just the studio and streaming businesses. Even so, industry observers believe Warner’s board could still be enticed toward Netflix’s transaction if Paramount sweetens its offer.
It remains far from clear what the outcome will be as the bidding war rages apart, with both deals (arguably) creating much larger “market power” problems that a merger to Paramount or even Netflix would bring to UK shores.
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