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Larry Ellison backs Paramount bid with $40.4 bn guarantee

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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Warner Bros rejects Paramount, pushes Netflix merger forward

Warner Bros Discovery has officially rejected a $108.4 billion takeover bid from Paramount Skydance, calling it risky and inadequately financed. In a letter to shareholders, the company’s board urged investors to turn down Paramount’s offer and instead approve the existing agreement with Netflix, which it described as a stronger, more secure deal.

Paramount had proposed an all-cash offer of $30 per share to acquire Warner Bros Discovery. While the bid appeared attractive in cash terms, the Warner Bros board highlighted concerns about its financing structure, noting that the deal was not fully secured and could be altered or withdrawn. This uncertainty, the board said, made the Paramount proposal inferior to Netflix’s binding offer.

Under the Netflix agreement, the streaming giant would acquire Warner Bros’ studios, the HBO Max service, and other assets for roughly $82–83 billion, including a combination of cash and Netflix stock. Warner Bros emphasized that the Netflix deal has solid financing and does not rely on uncertain outside funding, offering greater certainty to shareholders.

Paramount and its investors, which include the Ellison family and other backers, have argued that their all-cash bid offers immediate value and clarity to shareholders. Paramount has been actively reaching out to investors to press its case. However, Warner Bros cautioned that accepting the Paramount bid could trigger significant costs, including paying a breakup fee to Netflix if the current merger falls through, as well as potential debt and operational risks.

The board also noted that Paramount’s offer could lead to future restrictions on Warner Bros’ operations and financial stability, citing concerns over debt obligations and market conditions. The company stressed that shareholders should weigh these risks before making any decision.

No date has been announced for the shareholder vote on the Netflix deal, but analysts expect it could take place in spring or early summer 2026. Meanwhile, Warner Bros Discovery remains focused on completing the Netflix merger, which it believes offers the best long-term value and stability for shareholders and the company’s future growth.

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Paramount’s $108 billion bid sparks WBD takeover battle

In a step that has taken Hollywood by surprise, Paramount Global has launched a bold $108.4 billion hostile takeover bid for Warner Bros. Discovery (WBD), turning an already tense media landscape into a high-stakes corporate drama.

Paramount has offered $30 per share in all cash directly to WBD shareholders, bypassing the company’s management. This aggressive move comes just days after WBD agreed to a proposed merger with Netflix, a deal valued at around $83 billion. Paramount says its offer is “clearly superior” because it delivers higher value and guarantees immediate cash for investors.

For shareholders, the pitch is simple: more money, less uncertainty. Paramount argues that its proposal avoids the risks linked to stock-based mergers and complicated restructuring plans, while keeping WBD’s entire business, movies, TV studios, cable networks and international channels, under one roof.

The bid has intensified the power struggle among global media giants, who are fighting to survive and dominate in a world rapidly shifting from traditional television to streaming. With audience habits changing and competition increasing, companies are looking for size, scale and strong content libraries to stay relevant.

However, the road ahead could be difficult. Such a large merger is likely to attract serious regulatory and antitrust scrutiny, especially in the US, where authorities closely watch media consolidation. Critics warn that combining two major studios could reduce competition and limit consumer choice.

WBD has confirmed it has received Paramount’s offer and is reviewing it. For now, the company continues to back its existing agreement with Netflix. The final outcome will depend on shareholders, regulators and how intense this bidding battle becomes in the coming weeks.

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