Larry Ellison Backs Paramount With $40.4 Billion Guarantee in Warner Bros Takeover Battle

Oracle co-founder Larry Ellison has stepped forward with a sweeping financial commitment aimed at bolstering Paramount Skydance’s bid for Warner Bros Discovery, escalating one of the most consequential takeover battles in the global media industry.

According to a regulatory filing, Ellison will personally guarantee $40.4 billion in equity financing to support Paramount Skydance’s $108.4 billion all-cash offer for Warner Bros. The move is designed to reassure Warner Bros’ board, which previously questioned whether Paramount’s financing was fully secured.

Offer Terms Remain Intact

Despite the enhanced backing, Paramount confirmed that the core terms of the deal remain unchanged. The company continues to offer $30 per share in cash, signaling confidence that stronger financial assurances — rather than a higher price — will be enough to win shareholder approval.

In response to the revised filing, Warner Bros shares rose nearly 4% in premarket trading, while Paramount Skydance shares gained approximately 3%, reflecting renewed investor optimism.

As part of the updated agreement, Ellison also pledged not to revoke or alter the Ellison family trust during the transaction period, removing another concern that had weighed on Warner Bros’ board.

Reverse Termination Fee Increased

Paramount also raised its regulatory reverse termination fee to $5.8 billion, up from $5 billion, matching the terms of a competing bid from Netflix. Additionally, the expiration date of Paramount’s tender offer has been extended to January 21, 2026, providing more time to navigate regulatory and shareholder hurdles.

Previously, Warner Bros had urged shareholders to reject Paramount’s proposal, citing uncertainty around financing and the absence of a comprehensive family guarantee. That skepticism opened the door for Netflix to position itself as an alternative suitor with a mixed cash-and-stock offer.

High-Stakes Battle for Media Dominance

The escalating contest underscores the strategic importance of Warner Bros’ vast film and television library. Whoever prevails will gain a major advantage in the intensifying streaming wars, where exclusive content and scale increasingly determine success.

Industry analysts remain cautious. Some believe Paramount’s revised terms improve credibility but may still fall short against Netflix’s market dominance and perceived execution strength.

Regulatory Challenges Ahead

Even if shareholders approve a deal, regulatory scrutiny looms large. Any transaction involving Warner Bros would face intense antitrust review in both the United States and Europe.

U.S. lawmakers from both parties have already voiced concerns about further consolidation in the media sector. President Donald Trump has indicated he intends to weigh in on the transactions, adding political uncertainty to an already complex process.

A Paramount-Warner Bros merger would create a media powerhouse larger than Disney, combining major film studios and television networks under one roof. Critics argue such a move could give a single company disproportionate influence over American television content.

Meanwhile, a Netflix-Warner Bros combination would further cement Netflix’s dominance in streaming, creating a company with more than 428 million subscribers worldwide. Netflix executives argue their proposal would benefit consumers by lowering costs through bundled offerings and preserving theatrical releases.

What Comes Next

With Ellison’s guarantee now in place, Paramount hopes it has neutralized the key objections raised by Warner Bros’ board. However, investors, regulators, and policymakers will ultimately decide whether this financial show of force is enough to reshape Hollywood’s future.

The outcome could redefine the balance of power in global entertainment for decades to come.