Warner Bros Discovery Inc revealed late Monday that it is reviewing a revised takeover proposal from Paramount Skydance Corp, following an announcement by Oracle’s co-founder, Larry Ellison, that he would personally guarantee roughly $40 billion to support the acquisition effort.
Earlier on Monday, Paramount reaffirmed its commitment to a $30-per-share, all-cash proposal for Warner Bros, giving the entertainment group an overall valuation of $108.4 billion.
Responding to these concerns, Paramount emphasized on Monday that Larry Ellison maintains majority control over the trust’s assets and noted that Warner Bros Discovery had not previously requested a personal guarantee. The company added that it had nonetheless chosen to address Warner Bros Discovery’s currently stated concerns.
In a statement released Monday, Paramount, which is controlled by Skydance, confirmed that Larry Ellison would personally guarantee $40.4 billion in equity financing for the takeover offer, along with any potential damage claims. The company had previously stated that the Ellison family trust would back more than $40 billion of the bid. However, Warner Bros Discovery’s board criticized this arrangement last week, contending in statements sourced to the board that Paramount had “consistently misled” shareholders regarding the nature of the Ellison family’s support, arguing that a “revocable trust is no replacement for a secured commitment.”
Larry Ellison, whose estimated net worth stands at $259 billion, making him the world’s third-richest individual after Google co-founder Larry Page and Tesla CEO Elon Musk, has personal and financial ties to Paramount Skydance through his son, David Ellison—the current Chairman and CEO of the corporation.
Despite this development, Warner Bros Discovery’s board has reiterated its preference for an existing takeover bid presented by Netflix.
