Larry Ellison Pledges $40.4 Billion, Backs Paramount Skydance Hostile Bid

On December 22 Paramount Skydance revealed in an SEC filing that Larry Ellison has provided a personal guarantee covering $40.4 billion of the equity financing underpinning its all cash $30 per share hostile offer for Warner Bros. Discovery. The disclosure was designed to shore up financing credibility after the Warner Bros. Discovery board signaled concerns about the solidity of Paramount’s earlier proposal and the extent of Ellison family backing.

The filing states that Ellison is “providing a personal guarantee of the Ellison Trust’s $40.4 billion funding obligation.” As part of the amended terms, Ellison agreed not to revoke the Ellison family trust or transfer its assets during the pendency of the transaction. Paramount said the amended offer was designed “to address Warner Bros. stated concerns regarding the Prior Proposal and the December 8 Offer.”

The guarantee covers roughly $40.4 billion of the equity portion of the bid. Paramount plans additional financing from partners and lenders, with roughly $24 billion expected from Middle Eastern sovereign wealth funds and the remainder supplied by debt financing arranged through a syndicate of banks. The company also raised its reverse termination fee to $5.8 billion under the revised terms, a figure that matches the breakup fee attached to a competing bidder’s proposal.

Market response was immediate. Warner Bros. Discovery shares rose about 3.5 percent to $28.75 on the news, while Paramount’s stock climbed roughly 4.2 percent to $13.61. Shares of the streaming competitor that has also bid for assets moved lower in early trading. Some market commentary framed Paramount Skydance’s proposal as an approximately $108.4 billion transaction for Warner Bros. Discovery’s studios, HBO, CNN and other assets, while rival terms have been cited around $82.7 billion for streaming and studio components.

The size and personal nature of Ellison’s pledge recalibrate the contest for shareholder support and public perception. Paramount noted that Ellison “elected to address WBD’s current stated concerns,” signaling a deliberate effort to neutralize financing objections that had bolstered support for a competing bid. Analysts say the guarantee clarifies the funding picture but may not be decisive by itself. “I doubt many Warner Bros shareholders that are on the fence or planning to vote no were holding out due to issues the revised bid addresses such as a guarantee from Larry Ellison on the funding front,” said Seth Shafer, principal analyst at S&P Global.

If shareholders approve the revised terms, the combined transactions would face a difficult regulatory path in the United States and Europe. Lawmakers from both parties have expressed concern about media concentration, and senior political figures have indicated they will monitor the outcome closely. Warner Bros. Discovery is reviewing the amended proposal, and if the guarantee and other changes secure sufficient investor support the competing offers will proceed to antitrust review and potential political scrutiny before any deal can close.