Paramount has amended its hostile bid for Warner Bros. Discovery $WBD ( ▲ 3.04% ) by adding a major new backstop: billionaire Larry Ellison has agreed to personally guarantee $40.4 billion of the equity financing behind the deal. The move is designed to address concerns about funding risk after Warner’s board urged shareholders to reject Paramount’s $30-per-share offer.
What changed in the offer
Paramount’s proposal still values Warner at roughly $77.9 billion, or $30 per share, but the Ellison guarantee materially strengthens the financing package. Paramount also said it would publish records related to the family trust supporting the bid, aiming to add transparency around where the money is coming from.
Warner previously called Paramount’s offer “inferior and inadequate,” pointing to the heavy debt load involved and recommending shareholders stick with Netflix’s competing deal for Warner’s studio and streaming assets.
The competing Netflix deal
Netflix $NFLX ( ▼ 0.69% ) has agreed to acquire Warner’s studios and HBO Max in a transaction valued at about $82.7 billion, or $27.75 per share, using a mix of cash and stock. To support that bid, Netflix recently refinanced part of a $59 billion bridge loan with longer-dated and cheaper debt, signaling strong confidence in its balance sheet.
Netflix’s proposal has the backing of Warner’s board, but it faces regulatory and political scrutiny, including criticism from lawmakers concerned about media consolidation.
Why this matters
The Ellison guarantee raises the stakes in a high-profile bidding war that could reshape the entertainment industry. Paramount is betting that stronger financing certainty can sway shareholders, while Netflix is leaning on board support and its balance sheet strength. Either way, the outcome will likely hinge less on price alone and more on which bidder convinces investors its deal is actually doable.