### Larry Ellison's $40.4 Billion Personal Guarantee: A Game-Changer in Paramount's Bid for Warner Bros Larry Ellison, co-founder of Oracle, has made headlines by pledging a **$40.4 billion personal guarantee** to support Paramount's aggressive bid for Warner Bros. Discovery. This move comes amid intense competition from Netflix, which has already secured a deal valued at **$82.7 billion** for the same assets. Paramount's bid, which has faced skepticism from Warner Bros.' board, is now bolstered by Ellison's financial backing, aiming to reassure investors and stakeholders about the viability of the offer. Paramount has also increased its breakup fee to **$5.8 billion**, aligning it with Netflix's offer, as it seeks to enhance the attractiveness of its proposal [https://www.straitstimes.com/business/companies-markets/larry-ellison-pledges-52-billion-to-boost-paramounts-warner-bros-bid, https://english.aaj.tv/news/330449832/ellison-offers-personal-guarantee-to-beef-up-paramounts-warner-bros-bid, https://www.moneycontrol.com/world/larry-ellison-pledges-40-billion-to-boost-paramount-s-warner-bros-bid-article-13738258.html]. ### Structure of the News Event 1. **Background of the Bid** - Paramount has been pursuing Warner Bros. Discovery for several months. - The board of Warner Bros. has rejected multiple offers from Paramount, favoring Netflix's deal instead. - Ellison's involvement is seen as a strategic move to counteract doubts about Paramount's financial stability. 2. **Details of Ellison's Guarantee** - Ellison's guarantee is aimed at providing confidence in Paramount's financial backing. - The guarantee covers **$40.4 billion** of equity financing for the bid. - Paramount's offer remains at **$30 per share**, while Netflix's offer is at **$27.75 per share**. 3. **Reactions from Warner Bros. and Market Implications** - Warner Bros. has raised concerns about the legitimacy of Paramount's financing. - The board has previously described Paramount's offer as risky and questioned the transparency of its financial backing. - The market has reacted positively, with Warner Bros. shares rising by **2.5%** following the announcement of Ellison's guarantee [https://bilyonaryo.com/2025/12/23/billionaire-larry-ellison-steps-in-with-personal-guarantee-as-paramount-fights-for-warner-bros/entertainment, https://www.nation.com.pk/23-Dec-2025/paramount-s-new-hostile-offer-warner-bros-discovery-larry-ellison-will-personally-guarantee-dollar-40b]. 4. **Future Implications and Strategic Moves** - Paramount's strategy includes increasing its breakup fee to match Netflix's offer. - The outcome of this bidding war could reshape the media landscape, particularly in the streaming sector. - Shareholders of Warner Bros. may have a significant influence on the final decision, potentially challenging the board's recommendations [https://www.tekedia.com/ellison-steps-in-with-40-4bn-guarantee-as-paramount-battles-netflix-for-warner-bros-assets, https://www.newkerala.com/news/o/paramount-skydance-gets-larry-ellisons-guarantee-warner-bros-discovery-525]. ### Key Data Points Supporting the Summary - **Ellison's Guarantee**: $40.4 billion personal guarantee to support Paramount's bid. - **Paramount's Offer**: $30 per share for Warner Bros. Discovery. - **Netflix's Offer**: $27.75 per share, with a total deal value of $82.7 billion. - **Increased Breakup Fee**: Paramount raised its breakup fee to $5.8 billion. - **Market Reaction**: Warner Bros. shares increased by 2.5% following the announcement. ### Conclusion: The Stakes in the Warner Bros. Bid In summary, **Larry Ellison's personal guarantee of $40.4 billion significantly strengthens Paramount's bid for Warner Bros. Discovery**, positioning it as a formidable competitor against Netflix. The revised offer, coupled with an increased breakup fee, aims to address concerns raised by Warner Bros.' board and reassure investors about the financial backing of the deal. As the bidding war intensifies, the outcome will likely have lasting implications for the media and entertainment industry, particularly in the context of the ongoing streaming wars. 1. **Ellison's involvement enhances Paramount's credibility** in the bid. 2. **Warner Bros. faces pressure from shareholders** to reconsider its stance. 3. **The competitive landscape of media acquisitions is evolving**, with significant financial stakes involved [https://finance.yahoo.com/news/larry-ellison-provides-personal-guarantee-135209705.html, https://www.cnbc.com/2025/12/22/wbd-bid-paramount-larry-ellison-backing-bid.html].