Paramount Global has renewed its bid to acquire Warner Bros. Discovery (WBD), significantly strengthening its offer by securing a $40.4 billion personal financial guarantee from Oracle co-founder and billionaire Larry Ellison. The move is aimed at addressing concerns around deal certainty and financing, as competition intensifies for control of one of Hollywood’s largest media groups.
The revised proposal, disclosed in regulatory filings, includes an all-cash offer valuing Warner Bros. Discovery at about $108 billion, excluding debt. Paramount’s earlier approach had faced resistance from WBD’s board, which questioned whether the buyer had sufficient funding in place. Ellison’s backing is intended to remove those doubts.
Under the new structure, Ellison has agreed to personally guarantee the equity portion of the financing, making the offer one of the most heavily backed private pledges ever seen in the media sector. He has also committed not to move or reduce assets held in the Ellison family trust during the deal period, offering additional assurance to shareholders and regulators.
Paramount has further sweetened the proposal by raising its reverse breakup fee to $5.8 billion, matching the protection offered under a rival bid from Netflix. The company has also extended the deadline for shareholders to tender their shares until January 21, 2026, allowing more time for evaluation.
Despite the improved terms, Warner Bros. Discovery’s board continues to support Netflix’s competing offer, which combines cash and stock and values the company at around $72 billion. The board has argued that Netflix’s bid provides greater strategic clarity and execution certainty.
The market reacted swiftly to the developments. Shares of Paramount and Warner Bros. Discovery rose following the announcement, while Netflix stock saw a modest decline. Analysts said Ellison’s involvement significantly strengthens Paramount’s position but warned that regulatory scrutiny and shareholder approval remain major hurdles.
The battle for Warner Bros. Discovery underscores the growing consolidation pressures in the global media and streaming industry, where scale, content ownership, and financial strength are increasingly critical. With Ellison now firmly behind the bid, Paramount has signalled it is prepared for a prolonged and high-stakes takeover contest.
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