Larry Ellison provides personal guarantee for Paramount takeover of Warner Bros Discovery | Business

Tech billionaire Larry Ellison has agreed to provide more than $40 billion in personal guarantees for Paramount Skydance’s fight to take control of Warner Bros. Discovery amid an extraordinary corporate fight over the entertainment giant.

WBD last week urged its shareholders to reject a $108.4 billion hostile takeover bid from Paramount, which is controlled by the Ellisons, and earlier this month agreed to sell its famed movie studios, HBO cable network and streaming service to Netflix in an $82.7 billion deal.

WBD also accused Paramount of “consistently misleading” investors by claiming its offer was a “complete return” from the Ellisons (a safety net that would ensure it had sufficient funds).

To allay those concerns, Paramount said Monday morning that Larry Ellison, co-founder of tech giant Oracle, has agreed to personally back $40.4 billion in equity financing for the proposed deal.

Paramount said it was trying to satisfy WBD’s “unformed need” for financial flexibility and flatly denied that the Netflix offer was superior.

Unlike Netflix, which agreed to buy only the movie studios, HBO and HBO Max from WBD, Paramount bid for the entire company, which includes CNN, Cartoon Network and Discovery Channel. But WBD’s board directors concluded that the offer was “inadequate” and carried “significant” risks and costs.

David Ellison, chairman and CEO of Paramount and Larry’s son, said: “Paramount has repeatedly demonstrated its commitment to acquiring WBD. Our $30 per share, all-cash-financed offer was made on December 4 and remains the superior option to maximize value for WBD shareholders.

“Because of our commitment to investment and growth, our acquisition will be outstanding for all WBD stakeholders as a catalyst for greater content production, greater theatrical output and greater consumer choice. We expect WBD’s board of directors to take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future.”