Paramount Sweetens Its Offer For Warner Bros., Including Massive Guarantee From Larry Ellison

Despite Netflix announcing a deal with Warner Bros. Discovery to acquire the media and entertainment behemoth, Paramount has not given up on its own attempt to acquire the company by going directly to shareholders. Now, Paramount has announced that it has further sweetened its proposal in a bid to make a deal.

Paramount, which is run by David Ellison, has offered an "irrevocable personal guarantee" from his father, billionaire Oracle founder Larry Ellison, of $40.4 billion. Additionally, Paramount announced that it would increase and match Netflix's fee of $5.8 billion to be paid to WBD if the deal gets struck down in the regulatory process. Paramount's previous breakup fee was $5 billion.

What's more, Paramount said its revised proposal includes "further improved flexibility to WBD on debt refinancing transactions, representations, and interim operating covenants." The updated offer also includes the publishing of records that show the Ellison family trust owns 1.16 billion shares of Oracle stock, which is an attempt to show WBD shareholders that the Ellisons can indeed finance their $40.4 billion of the proposed $108 billion all-cash offer.

As announced previously, Paramount is offering $30 per share for the entirety of WBD, compared to $27.75 from Netflix (for a total of $82.7 billion) for select pieces of the group, including its film, TV, and gaming divisions.

In light of the new deal proposal, Paramount said it is extending the expiration date of its offer to January 21, 2026. WBD urged its shareholders to reject Paramount's earlier bid, but it remains to be seen if that stance will hold for this newer offer.

Netflix has said its deal offers "more choice and greater value for consumers" and that it will "strengthen the entertainment industry" overall. Co-CEO Ted Sarandos has said Netflix will continue to distribute WBD's movies in theaters, but not everyone believes him. Paramount, for its part, is trying to buy the entirety of WBD and has also promised to continue to release films theatrically.

Both Sarandos and the Ellisons have personally met with US President Donald Trump. His son in law, Jared Kushner, was originally involved in Paramount's hostile takeover bid for WBD through his company Affinity Partners, but later dropped out.

There is a gaming angle here, too, as whichever company acquires WBD may also take ownership of the company's vast gaming division, which owns numerous game franchises and studios. There is also the possibility that a deal does not materialize at all, for any number of reasons.

Senator Elizabeth Warren (D-MA) recently discussed why she believes media consolidation in this manner will negatively impact consumers.

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