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

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Even though Netflix has agreed to buy a large part of Warner Bros. Discovery, Paramount is still trying to acquire the company directly by appealing to its shareholders. Paramount recently announced it has improved its offer, hoping to reach an agreement.

Paramount, led by David Ellison, has secured a firm guarantee of $40.4 billion from his father, Larry Ellison, the founder of Oracle. They’ve also agreed to raise their breakup fee to match Netflix’s $5.8 billion payment to Warner Bros. Discovery if the deal falls through due to regulatory issues. Previously, Paramount’s breakup fee was $5 billion.

Paramount also stated its new offer gives Warner Bros. Discovery (WBD) even more options when it comes to managing debt, making guarantees, and setting short-term operating rules. The revised proposal also reveals that the Ellison family trust holds 1.16 billion shares of Oracle stock, aiming to assure WBD shareholders that the Ellisons have the financial resources—$40.4 billion—to complete the $108 billion all-cash deal.

Okay, so the latest news is that Paramount is making a serious play for Warner Bros. Discovery. They’re offering $30 a share to buy all of WBD. That’s a bigger offer than Netflix, who was looking to pick up just parts – like the movies, TV shows, and, importantly for me, the gaming divisions – for around $82.7 billion, at $27.75 a share. Basically, Paramount wants the whole thing, and they’re willing to pay more to get it.

Following the revised offer, Paramount has pushed back the deadline for its bid to January 21, 2026. Warner Bros. Discovery previously advised shareholders to decline Paramount’s initial offer, but it’s unclear whether they will maintain that position with this new proposal.

Netflix claims its agreement will give customers more options and better value, and also boost the entertainment industry as a whole. While Netflix’s Ted Sarandos says they’ll still show Warner Bros. Discovery’s movies in cinemas, some are skeptical. Meanwhile, Paramount is attempting to buy all of Warner Bros. Discovery and has also pledged to keep releasing films in theaters.

Reed Hastings and the Ellisons, leaders of Netflix, have both met with former US President Donald Trump. Jared Kushner, through his firm Affinity Partners, initially considered investing in a takeover of Warner Bros. Discovery (WBD) alongside Paramount, but later withdrew from the deal.

The potential buyer of Warner Bros. Discovery could also gain control of its large gaming business, which includes many popular game franchises and development studios. However, it’s also possible that a deal won’t happen for various reasons.

Senator Elizabeth Warren of Massachusetts recently explained her concerns that increasing media consolidation could harm consumers.

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2025-12-22 17:39