The Paramount WBD bid has entered a new phase after Paramount Skydance revised its takeover proposal for Warner Bros. Discovery. The updated offer now includes an irrevocable personal guarantee from Larry Ellison, adding a new layer of financial certainty to a deal that had previously faced strong resistance from WBD’s board.
This move signals that Paramount Skydance is not ready to step aside, even as WBD continues to move forward with its existing agreement with Netflix.
Why Paramount Updated Its WBD Bid
Earlier this month, Warner Bros. Discovery formally advised shareholders to reject Paramount’s proposal. At that time, WBD had already agreed to an $82.7 billion acquisition by Netflix, pending regulatory approval. The board stated that Paramount’s offer failed to qualify as a superior proposal under the terms of the Netflix agreement.
In response, Paramount Skydance reworked its approach. The revised Paramount WBD bid now includes a personal financial guarantee from Larry Ellison valued at $40.4 billion. The guarantee ensures that funding remains intact even if other backers withdraw.
Ellison, the founder of Oracle and a long-time supporter of Skydance, is backing the company led by his son, David Ellison. The addition of his personal guarantee directly addresses concerns raised by WBD about the certainty of financing.
The Role of the Ellison Guarantee
The updated proposal goes beyond a simple promise of funds. As part of the revised terms, Larry Ellison has agreed not to revoke or transfer assets held by the Ellison family trust while the transaction is under review. This restriction is designed to reassure Warner Bros. Discovery that the financial backing cannot be weakened mid-process.
WBD had previously indicated that only a personal guarantee could resolve doubts surrounding Paramount’s offer. With this condition now met, the revised Paramount WBD bid removes one of the key objections cited by the board.
Paramount Pushes Back on WBD’s Process
While Paramount agreed to the guarantee, the company made clear that it believes the process has been unfair. In a statement addressing the revised bid, Paramount noted that the demand for a personal guarantee was never raised during earlier discussions.
According to the company, these concerns surfaced only after WBD had already committed to what Paramount describes as an inferior transaction with Netflix. This public criticism suggests that Paramount views the decision-making timeline as a missed opportunity for open negotiation.
David Ellison Makes the Case to Shareholders
David Ellison, CEO of Paramount Skydance, continues to position the offer as the best path forward for Warner Bros. Discovery. He emphasized that the $30-per-share, all-cash proposal remains fully financed and focused on long-term value creation.
Ellison argues that the acquisition would accelerate content investment, expand theatrical releases, and increase consumer choice. He also framed the deal as a way to preserve and strengthen a historic Hollywood studio rather than folding it into a larger streaming-first strategy.
His message is clear: Paramount believes its vision offers broader benefits for WBD’s creative ecosystem, not just short-term shareholder returns.
Additional Changes in the Paramount WBD Bid
Beyond the personal guarantee, Paramount has added several technical adjustments to its proposal:
- Greater transparency around trust assets backing the deal
- More flexible transaction terms
- An increase in the regulatory reverse termination fee from $5 billion to $5.8 billion
The revised termination fee now aligns more closely with the protections offered under Netflix’s agreement, removing another potential disadvantage cited by critics.
What Happens Next
Despite the updates, Warner Bros. Discovery has not indicated that it plans to revisit its recommendation. The company remains committed to the Netflix transaction unless a clearly superior proposal emerges under the merger agreement’s terms.
The Paramount WBD bid is set to expire on January 21, 2026. Until then, the board must decide whether the added guarantee and revised terms are sufficient to justify reconsideration.
Conclusion
Paramount’s revised offer represents a significant escalation in its pursuit of Warner Bros. Discovery. By putting Larry Ellison’s personal guarantee on the table, the company has directly addressed the largest concern surrounding its bid.
Whether this move is enough to change the outcome remains uncertain. What is clear, however, is that Paramount Skydance is willing to push harder — and further — to compete with Netflix for control of one of Hollywood’s most valuable media portfolios.
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