The competition for control of Warner Bros. Discovery (WBD) has intensified, as Paramount Skydance announced an updated all-cash offer for the renowned movie studio. The revised proposal features an “irrevocable personal guarantee” from Larry Ellison, the billionaire founder of Oracle, who has committed to provide $40.4 billion in equity financing for the deal, as well as coverage for any potential damages claims against Paramount.

This move marks the latest effort by David Ellison, CEO of Paramount Skydance and son of Larry Ellison, to secure the acquisition amid competition from streaming leader Netflix. The personal guarantee from Larry Ellison is a new addition to the offer, aiming to address concerns previously raised by the WBD board regarding the deal’s financing.

The updated bid follows the WBD board’s recent rejection of Paramount’s initial offer, which came after WBD had already agreed to a deal with Netflix. That agreement, announced on December 5, would see Netflix acquire the studio through a combination of cash and stock, valuing WBD at $27.75 per share and an enterprise value of $82.7 billion.

Just three days after the Netflix deal was revealed, Paramount responded with a hostile bid valued at $108.4 billion, offering $30 per share. However, the WBD board dismissed this proposal, describing it as “illusory” and expressing concerns about the clarity of Paramount’s financing. The board emphasized that the Netflix agreement was binding, with enforceable commitments and no need for additional equity financing.

Paramount’s revised offer is specifically designed to address the WBD board’s concerns and demonstrate the company’s commitment to the acquisition. According to David Ellison, “Our $30 per share, fully financed all-cash offer remains the superior option to maximize value for WBD shareholders. Our commitment to investment and growth will benefit all WBD stakeholders, driving greater content production, increased theatrical releases, and more choices for consumers.”

Ellison also urged the WBD board to take the necessary steps to secure this transaction, emphasizing the importance of preserving and strengthening Warner Bros. as a cornerstone of Hollywood’s legacy.

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