Skydance-owned Paramount amended its hostile bid offer for Warner Bros. Discovery on Monday, announcing Larry Ellison would personally back the bid.
Paramount says the amendment follows a Warner Bros. request for a personal guarantee from Larry Ellison, Oracle founder, father of Paramount CEO David Ellison, and a longtime ally of President Donald Trump. Larry Ellison agreed to personally guarantee $40.4 billion of the equity financing for the deal and any damages claims against Paramount, the company said in a Monday press release.
“Paramount has repeatedly demonstrated its commitment to acquiring WBD. Our $30 per share, fully financed all-cash offer, made on December 4th, continues to be the superior option to maximize value for WBD shareholders. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater theatrical output, and more consumer choice,” David Ellison said in a statement.
Paramount announced its hostile, all-cash bid to Warner Bros. shareholders for $30 per share in early December, just days after Netflix announced a deal with Warner Bros. for $27.75 per share. David Ellison called Netflix’s proposal “inferior” to the initial hostile bid. The board of directors for Warner Bros. rejected the Paramount hostile bid on Wednesday.
“We strongly believe that Netflix and Warner Bros. joining forces will offer consumers more choice and value, allow the creative community to reach even more audiences with our combined distribution, and fuel our long-term growth,” Warner Bros. said Wednesday. “We made this deal because their deep portfolio of iconic franchises, expansive library, and strong studio capabilities will complement. not duplicate, our existing business.”
The Skydance company states that it previously included equity backing from the Ellison family trust, which it claims holds a majority of Larry Ellison’s assets, in its proposals. However, Warner Bros. reportedly asserted that they would only consider a personal guarantee from Ellison, according to Paramount’s release.
