The fight for control of Warner Bros Discovery has gotten more violent. In this high-stakes corporate battle, Paramount is making a strong move and won’t back down.
The big media company has made its offer much stronger by giving a huge personal guarantee. This daring move goes against a deal that the WBD board has already agreed to.
What Paramount did to plan ahead
Paramount has changed its offer to buy. As part of the new bid, billionaire Larry Ellison has now made an “irrevocable personal guarantee.” This promise is worth a lot of money: $40.4 billion.
Ellison started Oracle and gives Skydance Media money. The company that is making the bid is run by David Ellison’s son. This move is meant to calm fears about how the deal will be paid for.
The Warner Bros. Discovery board had already said no to Paramount’s last offer. They officially told shareholders to vote against it on December 17. The board said it wasn’t a “superior proposal” compared to the deal they already had with Netflix.
The deal with Netflix, which is in competition with it, is worth $82.7 billion. Engadget says it will close next year, but only if the government says it’s okay.
In its response, Paramount said it was upset. The business stated that previous discussions did not address financial concerns. Paramount said that its offer of $30 per share in cash is the best way for shareholders to get the most money.
David Ellison stated that acquiring the company would result in the production of more movies and TV shows. He stated that the offer serves as a safeguard for a renowned Hollywood asset.
The new rules say that the Ellison family trust has to make information about its assets public. Paramount also raised a key fee to match what Netflix was charging. This “regulatory reverse termination fee” went from $5 billion to $5.8 billion.
The offer from Paramount with the extra money will end on January 21, 2026. This gives the WBD board a deadline to think about its decision again.
In conclusion, the media is waiting for the Warner Bros. Discovery board to make its next move. Larry Ellison’s guarantee is a strong point for Paramount, which makes its bid harder to ignore. In the following weeks, we’ll find out if this new offer can successfully challenge the Netflix deal. The result will change the future of a number of big Hollywood studios.
