Paramount Skydance is pushing hard to win the support of Warner Bros Discovery shareholders. Oracle co‑founder Larry Ellison has stepped forward with an irrevocable personal guarantee of $40.4 billion. This guarantee backs Paramount Skydance’s all cash offer of $108 billion for Warner Bros Discovery.
Why the Guarantee Matters
Larry Ellison’s net worth sits near $243 billion, making him one of the world’s richest individuals. His personal pledge shows strong confidence in the deal and signals that Paramount Skydance can meet its financial commitments. The guarantee also reassures investors that the bid has deep pockets beyond corporate financing.
Breakup Fee and Competitive Pressure
David Ellison, the CEO of Paramount, has raised the breakup fee to match Netflix’s $5.8 billion figure. This fee would be payable if regulators block the transaction. By matching Netflix’s terms, Paramount Skydance hopes to appear as a serious alternative to the Netflix merger that Warner’s board currently favors.
Sovereign Wealth Support
In addition to Larry Ellison’s personal guarantee, the bid receives backing from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. Together, these funds contribute roughly $24 billion. Their involvement adds further financial muscle and international interest to the takeover attempt.
The tender offer remains open until January 21 2026. So far, only about 397,252 shares of Warner have been tendered. More than 2.4 billion shares are still outstanding, indicating that the bid has yet to gain broad shareholder traction.
Board Position and Ongoing Negotiations
Warner Bros Discovery’s board has issued a statement that it will carefully review the Paramount Skydance offer. However, the board also notes that it has not changed its recommendation regarding the Netflix merger agreement. This stance suggests that the board remains cautious and is weighing all options.
Paramount faces a public relations issue after a CBS News segment from “60 Minutes” was pulled just hours before broadcast. The decision, made by editorial supervisor Bari Weiss, sparked online comparisons to the film “The Insider.” The original segment later appeared by mistake on Canada’s Global News TV app, and the clip is now circulating online.
The battle for Warner Bros Discovery is far from over. Larry Ellison’s massive personal guarantee adds a dramatic twist to the story. Investors, regulators, and the public will watch closely as Paramount Skydance pushes its bid forward.
Source: Dark Horizons
