Paramount has issued a personal guarantee Larry Ellison worth $40.4 billion to address Warner Bros Discovery’s concerns. Oracle founder Larry Ellison provided this guarantee to support Paramount’s all-cash offer of $30 per share for Warner Bros Discovery (WBD). The personal guarantee aims to secure the deal and show Paramount’s commitment.
Warner Bros had earlier questioned the full equity backstop from the Ellison family trust. Paramount clarified that the trust holds the majority of Larry Ellison’s assets. Despite this, WBD demanded a personal guarantee from Ellison himself. Paramount quickly responded by amending its offer and including the personal guarantee.
The deal also includes Ellison agreeing not to revoke the Ellison family trust or transfer its assets during the transaction. Paramount said this would ensure stability and protect shareholders’ interests. The company also increased its regulatory reverse termination fee to $5.8 billion, matching Netflix’s breakup fee.
Paramount CEO David Ellison said the amended offer demonstrates the company’s commitment to acquiring WBD. He added that the deal would increase content production, improve theatrical output, and provide more consumer choice. Paramount’s offer remains higher than Netflix’s $27.75 per share bid. The deal is conditioned on WBD continuing to own 100 percent of its Global Networks business.
The personal guarantee Larry Ellison ensures Paramount’s financing is secure. It also addresses WBD’s concerns about interim operations and provides flexibility for debt refinancing. Paramount aims to finalize the acquisition and maximize value for Warner Bros shareholders. This bold move puts Paramount in a strong position against Netflix’s competing offer.
