Paramount has an updated Warner Bros. Discovery bid
Paramount Skydance isn’t giving up on getting Warner Bros. just yet. Discovery. The company amended its $108 billion offer to include Larry Ellison’s “irrevocable personal guarantee” worth $40.4 billion. Ellison is the founder of Oracle and a backer of Skydance, created by his son David Ellison, CEO of Paramount Skydance.
On December 17, WBD officially recommended that shareholders reject Paramount’s offer. WBD had previously accepted an $82.7 billion offer from Netflix, which is expected to be finalized next year following regulatory approval. “[The board] “unanimously determined that the tender offer initiated by Paramount Skydance on December 8, 2025 is not in the best interests of WBD and its shareholders and does not meet the criteria for a ‘superior proposal’ under the terms of WBD’s merger agreement with Netflix announced on December 5, 2025,” WBD said.
Paramount’s deal included support from sovereign wealth funds in countries like Saudi Arabia and Qatar. But the Ellisons had previously said that if other backers pulled out, they would “support the full amount of the offer.” This was not a sufficient guarantee for WBD.
Now, Paramount has returned with the irrevocable personal guarantee and an agreement that the senior Ellison will not “revoke” or “adversely transfer” the assets of the Ellison family trust while the transaction is pending. WBD had stated that a personal guarantee was the only solution to Paramount’s inadequate offer.
Paramount could have taken this step, but not with a smile on its face: “Neither of these concerns, nor the request for a personal guarantee, were raised by WBD or its advisors with Paramount during the 12-week period prior to WBD’s agreement to the lower transaction with Netflix, Inc.,” the company said of its updated offer.
“Our all-cash offering of $30 per share occurred on December 4 and continues to be the superior option to maximize value for WBD shareholders. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater film production and greater choice for consumers,” said David Ellison. “We hope that the WBD Board of Directors will take the necessary steps to secure this value-add transaction and preserve and strengthen an iconic Hollywood treasure for the future.”
Paramount’s updated offer also includes disclosure of the trust’s assets, more flexible transaction terms and an increase from $5 billion to $5.8 billion in its “regulatory reverse termination fee” – in line with Netflix’s.
Paramount’s offer will expire on January 21, 2026.
