Paramount Updates Warner Discovery Bid with Ellison's New Guarantee

• Ellison agreed to personally guarantee $40.4 billion of equity financing and publish records related to his family trust, addressing Warner's concerns about the credibility of Paramount's financing
• Warner rejected Paramount's original $30 per share bid in favor of Netflix's $27.75 per share offer, viewing the Netflix deal as superior despite the lower price
• The amended bid represents Paramount's attempt to overcome Warner's skepticism about the enforceability and structure of the Ellison family's financial commitment

Paramount Amends Warner Discovery Takeover Bid with Ellison Personal Guarantee

Paramount has revised its $77.9 billion ($30 per share) hostile takeover offer for Warner Bros. Discovery, with Oracle founder Larry Ellison now providing a personal guarantee for $40.4 billion of equity financing. The amendment also includes a commitment to publish records related to the Ellison family trust backing the deal.

The revision addresses Warner's earlier rejection of Paramount's bid, which cited concerns about an "illusory" offer and questioned the credibility of Paramount's equity financing structure. Warner had specifically requested a more enforceable personal commitment from Ellison rather than relying solely on the family trust structure.

Warner Bros. Discovery continues to favor Netflix's competing $72 billion ($27.75 per share) cash-and-stock proposal for its studios and HBO Max streaming assets. Despite Paramount's higher per-share offer, Warner's board previously stated it believes the Netflix deal remains superior.

Market Context:

• Major indices showed weakness: DJIA -0.51%, S&P 500 -0.35%, Nasdaq -0.50%
• The deal represents significant consolidation in the media/streaming sector
• Warner's market position includes valuable assets like HBO Max and Warner Bros. studios

The amended bid intensifies the bidding war for Warner's premium content assets as traditional media companies seek scale to compete with streaming giants. Ellison's personal guarantee significantly strengthens Paramount's financing credibility, potentially shifting the competitive dynamics of this high-stakes media consolidation battle.