Larry Ellison guarantees $40B in Paramount’s hostile bid for WBD

Paramount is intensifying its hostile takeover bid of Warner Bros. Discovery (WBD) with a new financial guarantee from Oracle founder Larry Ellison.

Ellison, whose estimated net worth is $250 billion, is personally assuring $40.4 billion in equity for the $78 billion deal. He is also the father of Paramount CEO David Ellison.

Paramount has hiked the deal’s breakup fee from $5 billion to $5.8 billion.

Despite these financial assurances, the WBD board remains hesitant. It currently favors a rival offer from Netflix, arguing that it delivers higher long-term value.

Paramount’s $30-per-share bid seeks to acquire all of WBD, including its cable channels such as CNN. Netflix is offering $27.75 per share for Warner Bros. and HBO only.

WBD plans to spin off its cable division and has expressed concern over Paramount’s reliance on funding from Saudi, Qatari, and Abu Dhabi royal families.