Paramount guarantees Larry Ellison backing in amended bid

Paramount Skydance On Monday, billionaire Larry Ellison was assured of backing a modified proposal. Warner Bros. discovery — A clear answer to questions posed by the WBD board of directors.

“Larry Ellison has agreed to provide $40.4 billion in equity financing for the offering and an irrevocable personal guarantee in the amount of any claims against Paramount,” the company said. newsletter.

Paramount said Ellison, the father of Paramount CEO David Ellison, also agreed not to revoke the Ellison family trust or adversely transfer assets during a pending transaction.

Paramount Skydance, Warner Bros. It offers Discovery $30 per share, all cash, and launches a hostile bid to rival that deal. netflix. Paramount did not specifically increase its offer on Monday and reiterated that it believed the deal was superior, but Paramount increased the proposed reverse breakup fee to match Netflix’s offer.

WBD agreed to sell its studio and streaming assets to Netflix earlier this month in a transaction valued at approximately $83 billion on a corporate basis. Paramount wants to buy the entirety of WBD, including its portfolio of TV networks, and says its offer has an enterprise value of $108.4 billion.

Last week, Warner Bros. Discovery chairman Samuel Di Piazza told CNBC’s David Faber that the board had concerns about Oracle co-founder Larry Ellison’s alleged support in the bidding.

“We were not sure that one of the richest people in the world would be there at the closing,” Di Piazza said at the time. “Making a deal is great; closing a deal is better.”

Warner Bros. Discovery’s shares rose 4% in premarket trading Monday, while Paramount shares rose 2%.