Oracle co-founder Larry Ellison has made a decisive move in the high-stakes battle for Warner Bros Discovery. He has provided a personal guarantee for $40.4 billion to back Paramount Skydance’s latest acquisition offer, according to a regulatory filing on Monday.
The guarantee directly addresses key concerns raised by the Warner Bros. board. Doubts about Paramount’s financing and lack of full Ellison family backing had previously pushed the board toward a competing cash-and-stock offer from Netflix.
News of the guarantee boosted shares. Warner Bros stock rose about 3%, while Paramount added over 7%. Warner Bros and Netflix did not immediately comment on the revised bid. Paramount confirmed its core $30-per-share all-cash offer remains unchanged. Control of Warner Bros’ vast content library is seen as a decisive asset in the intensifying streaming wars.
📽️ In a hollywood-style twist, investor Larry Ellison has guaranteed $40.4B to back Paramount’s, $PSKY, hostile bid for Warner Bros. Discovery, $WBD, strengthening deal financing without raising the price.
The all-cash bid remains $30/share, with a deadline at Jan 21, 2026. pic.twitter.com/40NOHLy7YL
— Fission (@FissionXYZ) December 22, 2025The new terms include Ellison’s agreement not to revoke or transfer assets from a key family trust during the transaction. Additionally, Paramount raised its regulatory reverse termination fee to $5.8 billion and extended its tender offer deadline to January 21, 2026.
Seth Shafer, principal analyst at S&P Global, expressed scepticism. He doubted shareholders were holding out specifically for a funding guarantee, suggesting other issues may be paramount.
Read: Warner Bros Discovery Rejects Paramount Skydance’s $108.4bn Bid
For either suitor, winning shareholder approval is just the first step. Both potential deals would face intense antitrust scrutiny in the U.S. and Europe. A Paramount-Warner Bros merger would create a studio larger than Disney. A Netflix-Warner Bros tie-up would cement the streamer’s dominance with nearly 430 million combined subscribers.
Lawmakers from both parties have raised concerns about consolidation. President Donald Trump has also indicated he plans to weigh in on the transactions.
