Paramount has returned to the table with a significantly reworked hostile proposal for Warner Bros. Discovery—this time backed by a very personal financial commitment from Larry Ellison.
According to CNN, the Oracle founder has agreed to directly guarantee $40.4 billion of the equity supporting Paramount’s takeover attempt, a move intended to counter ongoing doubts about whether the deal’s funding can hold up under scrutiny.
Alongside the guarantee, Paramount said Ellison has agreed to keep his family trust intact and allow deeper visibility into its holdings. The company disclosed that the trust controls 1.16 billion shares of Oracle stock.
Paramount also adjusted its proposed breakup fee, raising it to $5.8 billion, matching the penalty Netflix agreed to pay if its transaction with Warner fails to close.
While the financing details have changed, the core valuation has not. Paramount’s revised offer still values Warner Bros. Discovery at roughly $78 billion, or $30 per share. It seeks to acquire the entire company—including its film studio, streaming business, and cable networks—in a single transaction. Warner’s board is expected to formally review the updated bid, though it has already rejected multiple earlier versions.
This latest escalation comes after Netflix unexpectedly emerged as the winning bidder earlier this month. The streaming giant agreed to pay $72 billion, or $27.75 per share, for Warner’s studio operations and HBO Max streaming service.
That agreement hinges on Warner Bros. Discovery splitting into two companies, with shareholders retaining ownership in the spun-off cable business. Warner has said that structure ultimately delivers greater value than Paramount’s higher headline price.
Paramount responded to Netflix’s deal by going hostile, taking its case directly to Warner shareholders rather than negotiating with the board. The company argued that an all-cash offer for the whole business was cleaner and more straightforward.
In rejecting the initial hostile bid, Warner said Paramount mischaracterized both the certainty and the risk profile of its offer. The board also pushed back on suggestions that regulatory concerns favored Paramount, stating it saw no meaningful difference between the two deals on that front.
The new Ellison guarantee is designed to neutralize those objections. Paramount has described its funding as secure and sufficient, with CEO David Ellison previously dismissing Warner’s skepticism outright.
Even so, the company continues to rely on external capital, including backing from Middle Eastern sovereign wealth funds—another point Warner has flagged as unresolved.
Despite Warner’s repeated rejections, the hostile structure of Paramount’s offer leaves the final decision with shareholders. Investors can choose whether to support the board-backed Netflix transaction or tender their shares directly to Paramount.