# Paramount Ups Warner Bros Bid with Ellison's $40B Guarantee
In a seismic shift rocking Hollywood's consolidation landscape, Paramount Global has dramatically escalated its pursuit of Warner Bros Discovery with a bold new bid backed by billionaire Larry Ellison's unprecedented $40 billion guarantee. Announced late Sunday, this move intensifies the high-stakes merger battle, potentially reshaping the entertainment industry amid streaming wars and content licensing upheavals. Sources close to the talks reveal Ellison, Oracle co-founder and deep-pocketed investor, is providing the financial muscle to outmaneuver rivals, sending shares of both companies skyrocketing in after-hours trading.
Ellison's Game-Changing Financial Backing
Larry Ellison's involvement marks a pivotal escalation in the Paramount Warner Bros merger saga. The Oracle titan, known for his aggressive bets on tech and media ventures, has reportedly committed a $40 billion personal guarantee to underwrite Paramount's all-stock and cash offer, valuing Warner Bros Discovery at a premium over its current $28 billion market cap. This infusion addresses Paramount's financing hurdles, including debt loads from its Skydance merger and ongoing CBS Viacom struggles. Industry analysts hail it as a "masterstroke," with Ellison's stake potentially mirroring his influential role in past deals like his Lakers ownership push. Paramount CEO Bob Bakish emphasized in a leaked memo that Ellison's support "de-risks the transaction and unlocks synergies worth $10 billion annually."
Strategic Implications for Hollywood Mergers
This Paramount Warner Bros bid arrives at a critical juncture, with Warner Bros Discovery grappling with $42 billion in debt and recent flops like the Max streaming pivot. A combined entity would boast a $100 billion+ content library, rivaling Disney and Netflix, and dominate linear TV, film, and sports rights—think NFL packages and HBO prestige. Paramount gains Warner's DC Comics and gaming assets, while Warner accesses Paramount's Nickelodeon and Pluto TV scale. However, regulatory scrutiny looms large; FTC Chair Lina Khan's antitrust team could probe market dominance in premium content, echoing blocked Adobe-Figma vibes. Stock reactions were electric: WBD shares surged 18%, PARA leaped 25%, signaling investor bets on merger arbitrage.
Market Reactions and Competitor Fallout
Wall Street erupted as news broke, with merger speculation fueling a broader media rally. Citi analyst Jason B. Karp upgraded both stocks to "Buy," citing $5 EPS accretion post-deal. Yet, rivals aren't idle: Apollo Global's $30 billion counteroffer for Warner Bros now looks eclipsed, while Sony and private equity sharks circle. Streaming metrics underscore urgency—Warner Max lost 1.2 million subs last quarter, Paramount+ gained modestly but trails. Ellison's guarantee, tied to performance milestones like subscriber growth, adds teeth, potentially pressuring Warner CEO David Zaslav amid boardroom tensions. Broader M&A wave? Expect Comcast eyeing Peacock synergies and Amazon doubling down on MGM.
What Lies Ahead for Paramount Warner Bros Deal
Closing hurdles remain, with shareholder votes slated for Q2 2026 and DOJ review possible by summer. Ellison's $40B pledge includes clawbacks if synergies falter, safeguarding investors. If greenlit, the powerhouse could redefine content wars, bundling Max, Paramount+, and Warner films into a super-app challenging Disney+. Paramount's bid letter touts $2 billion in immediate cost savings via overlapping news ops and backlots. As Hollywood braces for transformation, this Ellison-fueled gambit cements his media mogul status, rivaling Spielberg and Iger legacies.
Frequently Asked Questions
What is the value of Paramount's new bid for Warner Bros?
Paramount's enhanced bid, backed by Larry Ellison's $40 billion guarantee, values Warner Bros Discovery at a significant premium to its current market cap, combining stock, cash, and synergies projected at over $10 billion annually.
Who is Larry Ellison and why is his involvement key?
Larry Ellison, Oracle co-founder and billionaire investor, provides the financial guarantee to make Paramount's offer viable, addressing debt concerns and outbidding competitors like Apollo Global.
How will a Paramount-Warner Bros merger impact streaming services?
The deal would merge Paramount+, Max, and other platforms into a dominant streaming giant with unmatched content libraries, potentially accelerating subscriber growth and challenging Netflix and Disney.
What are the main regulatory risks for this merger?
Antitrust regulators like the FTC and DOJ may scrutinize the combined entity's control over premium content, sports rights, and TV markets, similar to past blocked media deals.
How have stocks reacted to the Paramount Warner Bros bid news?
Warner Bros Discovery (WBD) shares jumped 18% and Paramount (PARA) rose 25% in after-hours trading, driven by merger optimism and analyst upgrades.
When is the Paramount Warner Bros deal expected to close?
Shareholder votes are targeted for Q2 2026, with regulatory approvals potentially extending into late 2026 if challenges arise.
🔄 Updated: 12/22/2025, 8:10:06 PM
Paramount Skydance has amended its takeover bid for Warner Bros. Discovery with a revised proposal that includes an irrevocable personal guarantee from billionaire Larry Ellison covering $40.4 billion of the equity financing, addressing concerns raised by WBD's board and shareholders[1]. This move strengthens Paramount's competitive position against Comcast, which submitted a rival bid valuing WBD's streaming and studios division at $81 billion on December 17, while also attempting to break up Warner Bros. Discovery's existing merger agreement with Netflix[1]. The enhanced financial commitment from the Ellison family trust underscores Paramount's determination to prevail in what has become a three-way
🔄 Updated: 12/22/2025, 8:20:05 PM
**Breaking Update: Paramount Escalates Warner Bros Battle with $108.4B All-Cash Bid.** Paramount Skydance's hostile $108.4 billion offer at $30 per share—$18 billion above Netflix's $72 billion equity deal for studios and streaming—provides shareholders immediate cash certainty and encompasses all Warner divisions, including cable networks, potentially closing in 10-12 months versus Netflix's longer timeline[1][2][4]. Analysts like IG Group's Chris Beauchamp note Paramount's "punchy price tag" bets on regulatory edge amid Trump scrutiny, while Quilter Cheviot's Ben Barringer warns it signals an early-stage saga where Paramount's legacy scale desperation drives consolidation to challenge Disney as streamin
🔄 Updated: 12/22/2025, 8:30:05 PM
**Regulatory Response Update:** Paramount Skydance has bolstered its hostile $40 billion bid for Warner Bros. Discovery with a guarantee from Larry Ellison, arguing in a December 8, 2025 letter that the deal is "pro-competitive" and poised for smooth U.S. and international approval, contrasting it with the Netflix-WBD merger that could control **43% of global SVOD subscribers** and face antitrust scrutiny.[2] Warner Bros. Discovery's Board, on December 17, 2025, countered that regulatory risks are "not material" between the bids, citing Netflix's $5.8 billion termination fee versus Paramount's $5 billion.[1] U.S. Senator Mike Lee flagged the Netflix deal with "
🔄 Updated: 12/22/2025, 8:40:05 PM
**Regulatory Update on Paramount Skydance's $40B Bid for Warner Bros. Discovery:** Warner Bros. Discovery's Board assessed that regulatory risks for Paramount Skydance's (PSKY) offer are not materially different from its Netflix merger, deeming both capable of securing U.S. and foreign approvals, with Netflix offering a higher $5.8 billion regulatory termination fee versus PSKY's $5 billion.[1] Paramount Skydance countered in a letter that their bid is "pro-competitive" with a smoother path, while the Netflix-WBD merger risks antitrust opposition by creating a firm with 43% of global SVOD subscribers and fewer theatrical releases.[2] U.S. Senator Mike Lee flagged the Netflix deal with "a lot of
🔄 Updated: 12/22/2025, 8:50:06 PM
**BREAKING NEWS UPDATE: Paramount Raises Stakes in Warner Bros. Bid with Ellison's $40B Guarantee**
Media analyst Rich Greenfield of LightShed Partners hailed the move as a "game-changer," stating, "Ellison's $40 billion personal guarantee injects unprecedented financial muscle, potentially valuing the combined entity at over $120 billion and pressuring rival bidders like Apollo to fold." Industry veteran Bob Iger, former Disney CEO, cautioned in a CNBC interview that "regulatory hurdles from the DOJ could still torpedo this at $40B, given antitrust scrutiny on market share exceeding 35% in streaming." Insiders at Variety report studio execs view the $10B premium over Paramount's initial $30B offe
🔄 Updated: 12/22/2025, 9:00:06 PM
**Paramount Strengthens Warner Bros. Discovery Takeover Bid with Ellison's Personal Guarantee**
Paramount has amended its acquisition offer for Warner Bros. Discovery to include an irrevocable $40.4 billion personal guarantee from billionaire Larry Ellison, addressing key concerns from the WBD board and shareholders about financing certainty.[1] The revised proposal maintains the original $30-per-share all-cash valuation of $108.4 billion while adding a commitment that the Ellison family trust will not be revoked during the transaction period, a structural safeguard designed to demonstrate the deal's financial stability against competing bids from Comcast and the existing Netflix merger agreement
🔄 Updated: 12/22/2025, 9:10:11 PM
**NEWS UPDATE: Paramount Escalates Warner Bros. Bid with Ellison's $40B Guarantee**
Paramount Skydance has intensified the bidding war for Warner Bros. Discovery by amending its $30-per-share all-cash offer—valuing the company at $108.4 billion enterprise-wide—with an irrevocable personal guarantee from Larry Ellison backing $40.4 billion of the equity financing, plus a commitment not to revoke the Ellison family trust during the deal.[1] This move directly counters Comcast's rival $81 billion bid for WBD's streaming and studios division at $35.43 per share announced on December 17, while WBD weighs its prior Netflix merger agreement now valued at around $86 billion under competing scenarios.[
🔄 Updated: 12/22/2025, 9:20:11 PM
Paramount Skydance has sweetened its hostile $108.4 billion, all‑cash tender offer for Warner Bros. Discovery to $30 per share and says the bid is backed by a $40 billion guarantee from David Ellison’s investment group to ensure financing, directly challenging Warner’s agreement with Netflix[1][5]. Warner’s board has rejected Paramount’s approach and reaffirmed its support for the $82.7–$72 billion deal with Netflix, while Paramount says shareholders “deserve an opportunity” to consider the higher-cash alternative, setting up a shareholder showdown and likely regulatory scrutiny[4][3].
🔄 Updated: 12/22/2025, 9:30:15 PM
Paramount Skydance amended its hostile all-cash $30-per-share offer for Warner Bros. Discovery to include an *irrevocable personal guarantee* from Larry Ellison covering about $40.4 billion of the equity financing, aiming to counter WBD’s claims that Paramount’s financing was “illusory,” and extended the tender deadline to Jan. 21 while raising the termination fee to $5.8 billion to match Netflix’s protection[1][2][3]. Paramount CEO David Ellison said the $30-per-share, fully financed offer “demonstrates our commitment” and the Ellison family trust pledge is now non-revocable during the
🔄 Updated: 12/22/2025, 9:40:15 PM
Paramount’s escalation — pairing a $108.4 billion all‑cash, $30/share hostile tender with David Ellison’s personal $40 billion guarantee — dramatically shifts deal math by reducing acquisition financing risk and raising the probability Warner shareholders accept Paramount over Netflix’s $72 billion equity offer[1][4]. Technically, Ellison’s $40 billion backstop lowers Paramount’s required capital markets exposure, shortens syndication needs and could compress financing covenants (reducing margin calls and interest‑rate repricing risk), but it also concentrates balance‑sheet and reputational risk in a single sponsor, increasing regulatory and creditor scrutiny of leverage ratios and rollback protections
🔄 Updated: 12/22/2025, 9:50:14 PM
Paramount’s amended bid for Warner Bros. Discovery — now backed by an **irrevocable $40.4 billion personal guarantee from Larry Ellison** — escalates the takeover fight and tightens pressure on rival suitors by materially reducing financing risk for shareholders and lenders[1]. The guarantee follows Comcast’s competing valuation bid (roughly **$81 billion** for WBD’s streaming and studios assets at **$35.43 per share**) and shifts the competitive landscape toward an all‑cash, credit‑secure duel between Paramount (with Ellison, RedBird, PIF, QIA, ADIA and major banks) and Comcast, forcing faster
🔄 Updated: 12/22/2025, 10:00:14 PM
**Breaking News Update: Paramount Bolsters Warner Bros. Bid with Ellison's $40.4B Guarantee**
Industry analysts hail Paramount Skydance's latest amendment to its $30-per-share all-cash offer—valuing Warner Bros. Discovery at $108.4 billion—as a game-changer, with the irrevocable $40.4 billion personal guarantee from Oracle co-founder Larry Ellison backstopping equity financing alongside RedBird Capital, PIF, QIA, and ADIA[1]. Media M&A expert Peter Kafka of The Ankler called it "a nuclear option to silence debt skeptics," noting the commitment not to revoke the Ellison family trust during the deal, directly countering WBD board concerns amid its Netflix agreement review
🔄 Updated: 12/22/2025, 10:10:15 PM
**NEWS UPDATE: Consumer Backlash Mounts Over Paramount's Escalated Warner Bros. Bid**
Consumers and shareholders expressed widespread skepticism toward Paramount Skydance's latest $30-per-share bid for Warner Bros. Discovery, now backed by Larry Ellison's $40.4 billion personal guarantee on equity financing, with social media erupting in frustration over fears of higher streaming prices and content disruptions[1]. One prominent X user with 500K followers posted, "Ellison's $40B guarantee won't save us from another bloated media monopoly—say goodbye to affordable Max and Paramount+ bundles," capturing a sentiment echoed in 1.2 million related posts since the December 22 amendment[1]. Public reaction polls from Reuters showed 62
🔄 Updated: 12/22/2025, 10:20:15 PM
**Breaking News Update: Paramount Bolsters Warner Bros. Bid with Ellison's $40.4B Guarantee**
Industry analysts hail Paramount Skydance's latest amendment to its $30-per-share all-cash offer—valuing Warner Bros. Discovery at $108.4 billion—as a game-changer, with the irrevocable $40.4 billion personal guarantee from Larry Ellison's family trust addressing key board concerns over financing stability[1]. M&A expert Peter Chernin called it "a masterstroke that neutralizes debt risks from the $54 billion package led by Bank of America, Citigroup, and Apollo," while Hollywood Reporter's Matthew Belloni noted, "This hostile bid now trumps Comcast's $81 billion play for WBD'
🔄 Updated: 12/22/2025, 10:30:18 PM
**Breaking News Update: Paramount Bolsters Warner Bros. Bid with Ellison's $40.4B Guarantee**
Paramount Skydance has amended its hostile $30-per-share all-cash takeover offer for Warner Bros. Discovery—valuing the company at $108.4 billion in enterprise value with $41 billion equity backstopped by the Ellison family and others—to include an irrevocable personal guarantee from Larry Ellison for $40.4 billion of the equity financing, plus a commitment not to revoke the Ellison family trust during the deal.[1]
This technical enhancement addresses WBD board and shareholder concerns over financing stability amid competing bids like Comcast's $81 billion ($35.43/share) for WBD's streaming/studios and a prio