Larry Ellison agrees to personally back Paramount’s Warner Bros takeover bid
Paramount have sent a revised offer for Warner Bros, which comes with financial support from Larry Ellison.
Ellison, the founder of Oracle and the second richest person in the world, is the father of David Ellison, who owns Paramount, and has pledged to provide a personal guarantee of more than $40 billion.
Earlier this month, Paramount Skydance unleashed a hostile takeover bid at $30 a share. Their $108 billion offer would see Paramount pay an extra $18 billion in cash compared with Netflix, whose $27.25 per share offer comprised a mix of cash and stock.
However, last week, Warner Bros Discovery urged to reject the lucrative offer in favour of the deal with Netflix. It was reported by the Financial Times that a key reason why Warner Bros Discovery prefer Netflix’s offer is due to Paramount’s being backed by the Ellison family trust rather than the personal finances of Larry Ellison.
Now, a new offer has been tabled that comes with the financial backing of the Oracle founder. David Ellison said in a statement of the new bid, “Paramount has repeatedly demonstrated its commitment to acquiring WBD. Our $30 per share, fully financed all-cash offer was on December 4th, and continues to be, the superior option to maximize value for WBD shareholders.”
Ellison continued, “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 theatrical output, and more consumer choice.”
His statement concluded, “We expect the board of directors of WBD to take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future.”
Additionally, Paramount have upped the price of their termination fee to $5.8 billion if the deal isn’t passed through by regulators, which equals Netflix.
Furthermore, Paramount have extended the end date for their offer to January 21st, 2026, which will give stakeholders more time to consider before coming to a decision.
Despite being urged to reject the previous bid by Paramount, it still remains in the hands of Warner Bros shareholders whether to accept the offer.
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