The Battle for Warner Brothers: Paramount Skydance Makes Amended Offer with Larry Ellison’s Guarantee
Paramount Skydance has made a bold move in the ongoing battle for the future of Warner Brothers, announcing an amended all-cash offer for the iconic movie studio. The offer, which includes an “irrevocable personal guarantee” from Oracle billionaire Larry Ellison, promises tens of billions in equity financing for the deal. This strategic maneuver is the latest effort by David Ellison, CEO of Paramount Skydance, to outbid the competition, particularly streaming giant Netflix.
The press release published by Paramount on Monday revealed that Larry Ellison has agreed to provide a substantial personal guarantee of $40.4 billion for the equity financing and any potential damages claims against Paramount. While the proposed equity financing was already part of Paramount’s initial offer, Ellison’s personal guarantee adds a new layer of assurance to the deal.
This revised offer comes just a week after the Warner Brothers Discovery (WBD) board rejected Paramount’s first bid in favor of a deal with Netflix. The Netflix agreement, announced on December 5th, outlined a purchase of WBD through a cash and stock option valued at $27.75 per share, with a total enterprise value of $82.7 billion.
In response to the rejection of their initial bid, Paramount launched a hostile takeover offer valued at $108.4 billion, offering $30 per share. However, the WBD board dismissed this offer as “illusory” and accused Paramount of misleading shareholders about the financing of the proposed deal. The board emphasized that the Netflix deal was a binding agreement with solid commitments and no need for additional equity financing.
Paramount’s amended offer is specifically tailored to address WBD’s concerns and present itself as the superior option for shareholders. CNBC had previously reported that WBD had turned down three previous takeover offers from Paramount before the Netflix deal was announced.
David Ellison, CEO of Paramount Skydance, expressed his commitment to acquiring Warner Brothers in the press release, highlighting the benefits of their $30 per share, fully financed all-cash offer. He emphasized that Paramount’s acquisition would drive investment, growth, and content production, leading to greater value for WBD stakeholders and a stronger future for the iconic Hollywood studio.
Ellison urged the WBD board to act decisively in securing this value-enhancing transaction and preserving Warner Brothers as a Hollywood treasure. JS reached out to Warner Bros. Discovery for comment on the ongoing negotiations.
