What's happened
As of December 31, 2025, Larry Ellison has personally guaranteed $40.4 billion to support Paramount Skydance's $108 billion hostile all-cash bid for Warner Bros. Discovery (WBD). This move addresses WBD's concerns over financing reliability, challenging Netflix's $82.7 billion cash-and-stock offer for part of WBD. The Ellisons aim to acquire all of WBD, including CNN and Discovery, intensifying a contentious bidding war with regulatory and shareholder implications.
What's behind the headline?
Ellison's Personal Guarantee Shifts the Stakes
Larry Ellison's decision to personally guarantee $40.4 billion of Paramount Skydance's bid removes a critical obstacle that Warner Bros. Discovery's board cited in rejecting earlier offers. This move signals the Ellisons' commitment to acquiring the entire WBD, including its cable networks like CNN and Discovery, contrasting with Netflix's partial acquisition focused on studios and streaming.
The Battle for Control and Influence
The bidding war is not just about money but control over a major media empire with significant cultural and political influence. Paramount's all-cash offer for the full company challenges Netflix's cash-and-stock deal, which includes a 16% stake in WBD and potential regulatory hurdles due to market concentration.
Regulatory and Shareholder Dynamics
Paramount's increased breakup fee to $5.8 billion matches Netflix's offer, aiming to reassure shareholders and regulators. However, the involvement of Middle Eastern sovereign wealth funds and the political connections of the Ellisons, including ties to former President Donald Trump, add complexity to regulatory scrutiny.
Forecast and Impact
The board's final decision, expected soon, will shape the future of Hollywood and streaming. Paramount's full acquisition would consolidate a vast media portfolio under the Ellisons, potentially reshaping content production and distribution. Shareholders face a choice between a higher all-cash bid with financing questions resolved and a lower, but board-endorsed, Netflix deal.
What This Means for the Reader
Consumers may see shifts in media offerings depending on the outcome, with potential impacts on content diversity and pricing. Investors and industry watchers should anticipate continued volatility as the bidding war unfolds and regulatory reviews proceed.
What the papers say
The New York Times highlights the personal and business partnership between Larry and David Ellison, noting Larry's $40.4 billion personal guarantee as a pivotal development in the hostile bid for Warner Bros. Discovery. The NY Post's Charles Gasparino details the contentious bidding process, including allegations from Paramount Skydance that WBD's board favored Netflix due to personal relationships, and the strategic moves by the Ellisons to solidify their offer. Business Insider UK and The Independent emphasize the financial mechanics, such as the shift from a revocable trust to a personal guarantee and the matching of breakup fees to Netflix's offer, underscoring Paramount's commitment. The Guardian and AP News focus on the broader corporate battle, contrasting Paramount's full-company bid with Netflix's partial acquisition and highlighting the regulatory and shareholder challenges ahead. These sources collectively paint a picture of a high-stakes, complex acquisition battle with significant implications for media ownership and market competition.
How we got here
Warner Bros. Discovery (WBD) agreed to sell its studios and streaming assets to Netflix for $82.7 billion, but Paramount Skydance, led by David Ellison and backed by his father Larry Ellison, launched a hostile $108 billion all-cash bid for the entire company. WBD's board rejected Paramount's earlier offers, citing concerns over financing guarantees tied to a revocable trust. The Ellisons have since strengthened their bid with Larry Ellison's personal guarantee and increased breakup fees, escalating a high-stakes media acquisition battle.
Go deeper
- What are the main differences between Paramount's and Netflix's offers for Warner Bros. Discovery?
- How does Larry Ellison's personal guarantee affect the bidding war?
- What regulatory challenges could impact the Warner Bros. Discovery acquisition?
Common question
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Why Is Paramount Increasing Its Bid for Warner Bros?
Paramount's recent move to boost its bid for Warner Bros. Discovery has sparked widespread interest. With Larry Ellison personally guaranteeing over $40 billion and the bid's escalation, many are asking what this means for the future of these media giants. Is this a sign of a larger industry shake-up? Below, we explore the key questions surrounding this high-stakes bidding war and what it could mean for shareholders, competitors, and the entertainment landscape.
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Who’s Winning the Warner Bros. Discovery Bid War?
The bidding war for Warner Bros. Discovery has intensified, with major players like Paramount, Netflix, and others vying for control. With high stakes, complex negotiations, and strategic moves, many are wondering who is currently leading and what the implications could be. Below, we explore the key questions surrounding this high-profile media deal, from the bids involved to the strategic significance of the competition.
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Who is backing the fight for Warner Bros. Discovery? Inside the WBD bidding war
The battle for Warner Bros. Discovery (WBD) is heating up, with major players like Larry Ellison, Paramount Skydance, and Netflix all vying for control. Understanding who is backing each bid and what it means for the future of WBD can be confusing. Here, we break down the key players, their strategies, and what this high-stakes bidding war could mean for shareholders and the media industry as a whole. If you're wondering why these billionaires are so invested or how the bids compare, you've come to the right place.
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What Are the Biggest Corporate Bids and Regional Shifts Today?
The global market is buzzing with major corporate takeover battles and regional geopolitical shifts. From billion-dollar media bids to currency changes in Europe and escalating Middle Eastern conflicts, these stories are shaping the future of business and geopolitics. Curious about who’s winning the corporate wars, what regional conflicts mean for markets, and how these events impact your world? Keep reading for the key insights and answers to your top questions.
More on these topics
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Warner Bros. Discovery is an upcoming American multinational mass media and entertainment conglomerate. The company will be formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed by mid-April 2022.
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Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.
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David Ellison is an American film producer and the founder and CEO of Skydance Media.
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Netflix, Inc. is an American technology and media services provider and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California.
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ViacomCBS Inc. is an American diversified multinational mass media conglomerate formed through the merger of CBS Corporation and the second incarnation of Viacom in 2019, which were split from the original incarnation of Viacom in 2005.
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David M. Zaslav is the president and chief executive officer of Discovery Inc., a position he has held since January 2007.
Most recently under Zaslav, Discovery acquired Scripps Networks Interactive, in a transaction which closed in March 2018.
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Theodore Anthony Sarandos Jr. is an American businessman who serves as the co-chief executive officer and chief content officer for Netflix.
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Jared Corey Kushner is an American investor, real-estate developer, and newspaper publisher who is currently senior advisor to his father-in-law, Donald Trump, the President of the United States.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.