The battle for control of Warner Bros Discovery has intensified dramatically, with tech billionaire Larry Ellison stepping in to personally back his son's ambitious takeover attempt. Ellison, the founder of Oracle, has offered a staggering $40.4 billion personal guarantee to support Paramount Global's revised, all-cash bid for the entertainment giant, valued at a total of $108 billion.
A Father's Backing for a Hostile Bid
This move directly addresses a key concern raised by the Warner Bros Discovery board, which had previously labeled the initial Paramount offer as too risky. The board had pointed out the proposal's reliance on financing from an "unknown and opaque revocable trust" and noted the absence of a clear commitment from the Ellison family. The new guarantee from Larry Ellison, one of the world's wealthiest individuals and a notable ally of former President Donald Trump, aims to erase those doubts about the bid's financial solidity.
The amended proposal from Paramount, led by CEO David Ellison, also increases the breakup fee to $5.8 billion, matching the fee in Netflix's rival offer. This fee would be payable to Warner Bros if the Paramount deal fails to gain regulatory approval. "Paramount has repeatedly demonstrated its commitment to acquiring WBD," stated David Ellison, asserting that his company's $30 per share, fully financed all-cash offer remains the best option to maximize value for shareholders.
Netflix's Blockbuster Deal Sparks a War
This high-stakes corporate drama began when Netflix shocked the entertainment industry on December 5 by announcing it had sealed an agreement to acquire the storied film and television studio along with the HBO Max streaming service for nearly $83 billion. This deal marked the largest consolidation in the entertainment sector this decade.
Just three days later, Paramount Global launched its own unsolicited, all-cash tender offer, valuing Warner Bros Discovery at $108.4 billion. A significant point of differentiation is the scope of the acquisition: while Netflix's offer is for the studio and streaming assets, Paramount's bid includes the purchase of major cable channels like CNN, TNT, TBS, and Discovery. These would join Paramount's existing TV portfolio, which includes CBS, MTV, and Comedy Central.
White House and Political Undertones
The bidding war, which promises to reshape Hollywood and the broader U.S. media landscape, has not escaped political attention. Former President Donald Trump has publicly commented on the situation, stating that Netflix's deal "could be a problem" due to the market concentration it would create. He has also emphasized his desire for CNN to find new ownership as part of any sale, targeting the network he has frequently criticized.
Both Paramount and Netflix have reportedly lobbied the White House directly. Under David Ellison's leadership, Paramount has made conservative-friendly editorial changes at CBS News, including appointing journalist Bari Weiss, a prominent critic of mainstream media bias, as editor-in-chief. These moves are seen as efforts to curry favor in politically charged regulatory environment.
The revised Paramount bid also seeks to alleviate concerns about its complex financing structure, which includes $24 billion from Middle East sovereign wealth funds—a detail that had raised questions about the need for additional government approvals. With Larry Ellison's colossal personal guarantee now on the table, the pressure is on Warner Bros Discovery's board and shareholders to choose between two fundamentally different visions for the company's future.
