According to TechCrunch, Paramount Skydance announced an amended all-cash offer for Warner Bros. Discovery on Monday, backed by an “irrevocable personal guarantee” from Oracle billionaire Larry Ellison for $40.4 billion in equity financing. This new bid is Paramount’s latest attempt to outmaneuver Netflix, which announced a deal to acquire WBD on December 5th for a total enterprise value of $82.7 billion, or $27.75 per share. Paramount first launched a hostile bid three days later, on December 8th, valued at $108.4 billion, or $30 per share. The WBD board rejected that initial Paramount offer just last week, calling it “illusory” and favoring the Netflix agreement. The new personal guarantee from Larry Ellison is designed specifically to address WBD’s concerns about the financing of Paramount’s “superior offer,” as stated by Paramount Skydance CEO David Ellison, who is Larry’s son.
The Battle for Hollywood’s Soul
Here’s the thing: this isn’t just about money anymore. It’s a clash of visions for what a legacy studio should be in the streaming age. Netflix’s deal is clean, mostly stock, and integrates WBD into its existing content machine. Paramount’s offer, now supercharged by Larry Ellison’s checkbook, is a hostile, all-cash play that promises a different future—more theatrical output, more production. But is that promise real, or just a tactic to win the boardroom war? The WBD directors have already called Paramount’s previous financing “misleading.” Throwing Larry Ellison’s personal fortune into the mix is a dramatic way to say, “See? We’re serious.” But it also makes this feel intensely personal for the Ellison family. David wants to run a major studio, and dad Larry has the resources to make it a reality, no matter the cost.
Stakeholder Whiplash
For everyone else—shareholders, employees, creatives—this ongoing saga creates massive uncertainty. Shareholders are theoretically being offered more cash upfront with Paramount. But the Netflix deal is arguably simpler and carries the momentum of the market-leading streamer’s global platform. Which is the better long-term bet? For filmmakers and showrunners, a Paramount-owned Warner might mean a push back toward traditional theatrical windows and maybe bigger budgets for franchise films. A Netflix-owned Warner likely means faster integration into its algorithmic, global content pipeline. And for consumers? It probably means less choice in the long run, as the industry consolidates into maybe three or four mega-players. Basically, no matter who wins, the era of a standalone Warner Bros. is over.
What Happens Next
So, does Larry Ellison’s guarantee change the game? It certainly raises the stakes. The WBD board’s main objection—financing—has been addressed in the most forceful way possible. They can’t easily claim the money isn’t there now. This puts enormous pressure on them to at least engage with Paramount or risk shareholder lawsuits for not pursuing a higher offer. But the Netflix deal is a signed, binding agreement. Backing out would be messy and expensive. We’re looking at a potential protracted legal and proxy fight. Paramount is betting that $30 per share in cash is too sweet for shareholders to ignore, forcing the board’s hand. The next move is WBD’s. Do they stick with the known quantity of Netflix, or roll the dice on the Ellison family’s deep pockets and grand ambitions? Buckle up.
