Paramount has escalated its hostile bid to acquire Warner Bros. Discovery by unveiling a major financial assurance aimed at addressing concerns over its ability to fund the deal.
The company announced that Oracle co-founder Larry Ellison will personally guarantee more than $40 billion in equity backing for the proposed acquisition, a move designed to reinforce the credibility of the offer.
Warner Bros. Discovery’s board has repeatedly rejected Paramount’s proposal, instead favoring a competing offer from Netflix, which it believes delivers greater long-term value. The board has also accused Paramount of overstating the strength of its financing. In response, Paramount disclosed additional details about Ellison’s family trust and confirmed that the billionaire will fully stand behind the equity portion of the roughly $78 billion transaction. Paramount also increased its breakup fee to match Netflix’s, signalling its determination to keep the bid alive.
Despite the enhanced guarantees, key disagreements remain. While Paramount’s offer values Warner Bros. Discovery shares higher on paper, Netflix and WBD argue that plans to separate cable assets would ultimately result in a superior valuation. The revised bid now puts pressure on WBD’s board to formally respond, even as shareholders weigh their own options. Following the announcement, shares of Warner Bros. Discovery and Paramount rose, reflecting renewed investor interest as the high-stakes media takeover battle intensifies.
