Core Viewpoint - Warner Bros. Discovery (WBD) shareholders are faced with a decision to tender their shares to Paramount for $30 in cash or to stick with the board's recommendation to sell the company's studio and streaming assets to Netflix for $27.75 per share [1][2][3]. Group 1: Shareholder Decisions - Shareholders have until January 8 to tender their shares to Paramount, although this deadline may be extended [2]. - If Paramount acquires 51% of WBD shares, it would gain control of the company despite the board's agreement to sell assets to Netflix [3]. - The decision to tender shares presents a game theory element, as shareholders may prefer a bidding war rather than focusing solely on the best buyer [4]. Group 2: Reasons to Tender - Two main reasons for shareholders to tender their shares to Paramount include the belief that Paramount's $30 offer is more valuable than Netflix's bid and the desire to instigate a bidding war [5]. - Shareholders may perceive a higher likelihood of regulatory approval for Paramount's offer compared to Netflix's, especially given the potential value of Discovery Global [6][10]. - Paramount's all-cash offer is seen as more straightforward compared to Netflix's bid, which includes equity with uncertain value [8]. Group 3: Reasons Not to Tender - Some shareholders may prefer not to tender their shares to encourage a bidding war, believing that Paramount will raise its bid if it sees limited interest [12]. - There are concerns that the Netflix proposal, which includes equity, may ultimately be more valuable if a mystery buyer emerges for Discovery Global [13]. - Ensuring WBD splits Discovery Global is viewed as a safer option in case regulatory hurdles block a Paramount-WBD merger [14][15]. Group 4: Financing and Regulatory Concerns - Paramount has made adjustments to its financing structure to address concerns, including a personal guarantee from Oracle founder Larry Ellison for $40.4 billion [16]. - The financing for Paramount's bid involves significant contributions from Middle Eastern sovereign wealth funds, raising potential regulatory scrutiny [20]. - WBD's board has expressed concerns about the source of funding for Paramount's bid, preferring more transparency regarding the Ellison family's financial commitment [18][19].

Core Insights - The ongoing battle for ownership of Warner Bros. Discovery involves Paramount Skydance and Netflix, with Paramount making a revised offer to address Warner Bros.' concerns [2][3][8] - Larry Ellison, co-founder of Oracle, has personally guaranteed over $40 billion of equity financing for Paramount's offer, which may influence the outcome of the acquisition [4][7] - Investors are closely monitoring the situation, with Paramount's shares rising over 5% and Warner Bros.' shares increasing approximately 3% following the announcement, while Netflix's shares fell about 1% [5][6] Company Developments - Paramount Skydance has adjusted its offer for Warner Bros. Discovery, responding to concerns raised by Warner Bros. in a letter to shareholders [3][8] - Warner Bros. previously described Paramount's offer as "illusory" and claimed there was "no Ellison family commitment of any kind" [7] - Netflix has secured $25 billion in financing to support its planned acquisition of Warner Bros. Discovery [7]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Group 1 - Netflix has secured $25 billion in new bank financing to replace part of its $59 billion bridge loan for acquiring Warner Bros. Discovery's studios and streaming business [1][2] - The refinancing includes a $5 billion senior unsecured revolving credit facility and two senior unsecured delayed-draw term-loan facilities of $10 billion each [2] - The acquisition deal with Warner Bros. Discovery has an equity value of $72 billion, or $27.75 per share, with an enterprise value of $82.7 billion, expected to close after the separation of WBD's global networks business in Q3 2026 [4] Group 2 - Paramount has amended its hostile tender offer for Warner Bros. Discovery, addressing concerns from WBD's board, which preferred Netflix's deal [2][5] - Larry Ellison, co-founder of Oracle, has provided a personal guarantee of $40.4 billion for Paramount's cash offer, which has been raised to $30 per share [5] - WBD stockholders have until January 20 to tender their shares directly to Paramount [6]

Oracle cofounder Larry Ellison is raising the stakes in the battle for Hollywood’s future, personally intervening to salvage his son David Ellison’s hostile takeover bid for Warner Bros. Discovery. On Monday, David’s company, Paramount Skydance, announced the elder Ellison had provided an “irrevocable personal guarantee” of $40.4 billion to finance the deal, directly countering claims that the company’s funding was unreliable.​ It’s the latest turn in the high-profile tug-of-war for Warner Bros. Discovery ...

Paramount Skydance said Monday that billionaire Larry Ellison is personally backing its hostile offer to buy Warner Bros. Discovery to the tune of more than $40 billion, escalating its bidding war with Netflix. Larry Ellison, the co-founder of Oracle and one of the richest people in the world, is the father of Paramount chief David Ellison. Paramount has been seeking to buy all of Warner Bros. Discovery, taking a hostile offer directly to Warner Bros. shareholders after the board rejected Paramount's offe ...

Core Viewpoint - Paramount Skydance has increased its offer for Warner Brothers, with Larry Ellison personally guaranteeing $48 billion in equity financing for the $108 billion takeover bid [1][7]. Financing and Offer Details - Larry Ellison's commitment is significant as it addresses the financing vulnerabilities of Paramount's offer, which is more financially robust than Netflix's, although Netflix is not interested in acquiring the entire Warner Brothers portfolio [3][4]. - Paramount has secured a revolving credit facility of $5 billion and is on track for $210 billion in loans, with plans to syndicate approximately $34 billion [5]. - The deal includes a breakup fee of $5.8 billion if the acquisition does not proceed, matching Netflix's offer [7][8]. Competitive Landscape - The competitive dynamics are influenced by the differing valuations of cable networks, with David Zaslav believing they hold more value than what Paramount is currently offering [9][13]. - Paramount is extending its tender offer to January 21st, indicating a strategic move to engage directly with shareholders [10]. Regulatory and Strategic Considerations - There are implications regarding the relationship between the Ellison family and the administration, particularly concerning the potential ownership of CNN and other assets [12].

Larry Ellison said he would provide an ‘irrevocable personal guarantee’ for the entire equity of Paramount’s offer - Toru Yamanaka/AFP or licensors The billionaire founder of Oracle has agreed to provide a personal guarantee of $40bn (£31bn) in an effort to revive Paramount’s hostile takeover bid for Warner Bros. Larry Ellison, an ally of Donald Trump and one of the world’s richest men, said he would provide an “irrevocable personal guarantee” for the entire equity of Paramount’s $108bn offer. Paramoun ...

Our breaking deal story literally just moments ago. Paramount now amending its $30 per share allcash offer for Warner Brothers Discovery in response to WBD's concerns about that bid. The per share offer price not changing, but Paramount says in response to the Warner Brothers filing and comments made by WBD principles and advisers in television appearances, including on squawk, that it's doing a whole bunch of different things uh in six different ways.And we're going to get into all of it. Jerry Cardell is ...

Core Viewpoint - Paramount is amending its $30 per share all-cash offer for Warner Brothers Discovery (WBD) in response to WBD's concerns, while the offer price remains unchanged [1] Group 1: Offer Details - The amended offer includes a personal guarantee from Larry Ellison, enhancing the credibility of the financing for the $41 billion transaction [3][7] - Paramount's offer is presented as straightforward, emphasizing shareholder value and certainty, contrasting with Netflix's more complex offer [4][12] - The offer is all cash, providing a clear regulatory path, while Netflix's offer involves stock and additional complexities [12][19] Group 2: Financial Backing - The Ellison Family Trust, which has $250 billion in assets, is backing the transaction, providing over six times coverage for the $40 billion equity being backstopped [9][10] - The trust has been involved in numerous transactions over the past 40 years, reinforcing its reliability [9] Group 3: Competitive Landscape - Paramount argues that its deal would foster competition in the streaming market, while the Netflix deal would reduce competition by consolidating power [19][26] - The potential merger of Paramount Plus and HBO Max would create a competitive three-horse race in streaming, benefiting the entire value chain [24] Group 4: Shareholder Engagement - Paramount is directly engaging with WBD shareholders, emphasizing that the board does not own the company and that shareholder interests should be prioritized [22][27] - The company stresses the need for a clear discussion on the value of both offers, which has been lacking in the current negotiations [27][28]