Paramount Skydance Corporation has intensified its efforts to acquire Warner Bros. Discovery by amending its hostile takeover bid. The revised proposal includes a significant personal guarantee from Larry Ellison, founder of Oracle, aimed at addressing concerns raised by Warner Bros. Discovery regarding the offer’s viability.
Earlier this month, Warner Bros. Discovery confirmed that Netflix had secured a bid to purchase the company for around $82.7 billion. Should this deal proceed, Netflix would gain control over major assets, including the Warner Bros. film and television studios, as well as HBO and HBO Max. This acquisition would allow Netflix to oversee a range of prominent franchises, such as DC, Harry Potter, Game of Thrones, Dune, and The Lord of the Rings. Netflix has assured that it will continue supporting Warner Bros.’ theatrical film lineup, which includes anticipated DC projects like Supergirl, set for 2026, and Man of Tomorrow, scheduled for 2027.
In response to the escalating competition, Paramount modified its bid on Monday to enhance its attractiveness to Warner Bros. Discovery’s shareholders. The company has maintained its offer at $30 per share for all assets and liabilities associated with Warner Bros. Discovery. The total value of Paramount’s bid stands at approximately $108 billion.
As part of the updated proposal, Larry Ellison has committed to providing an irrevocable personal guarantee of $40.4 billion for the equity financing of the offer, along with any potential damages claims against Paramount. His son, David Ellison, has recently taken on the role of CEO at Paramount Skydance.
Paramount has also increased its breakup fee from $5 billion to $5.8 billion and extended the expiration date of the offer to January 21, 2026. In a statement, David Ellison emphasized Paramount’s dedication to acquiring Warner Bros. Discovery. “Our $30 per share, fully financed all-cash offer, which was presented on December 4, continues to be the superior option to maximize value for WBD shareholders,” he stated. He urged the board of directors at Warner Bros. Discovery to pursue this value-enhancing transaction to preserve a significant part of Hollywood’s legacy.
As the bidding war unfolds, the outcome remains uncertain. Both Paramount and Netflix are vying for control of a major player in the entertainment industry, a move that could reshape the landscape of film and television production in the coming years.
