Paramount sweetens its WBD bid with a $40 billion guarantee from Larry Ellison — but doesn't increase the price

Core Viewpoint - Paramount Skydance has revised its hostile bid for Warner Bros. Discovery (WBD) in response to WBD's board supporting Netflix's offer, without increasing the bid price [1][4]. Group 1: Bid Details - Paramount's new offer includes a personal guarantee of $40.4 billion in equity financing from Larry Ellison, a prominent billionaire and father of Paramount CEO David Ellison [2]. - The revised bid addresses WBD's previous objections regarding the reliance on an "unknown and opaque revocable trust" for financing, which WBD deemed insufficient [3]. - Paramount has maintained its bid price at $30 per share for the entire company, contrasting with Netflix's offer of $27.75 per share, which is limited to WBD's studios and streaming business [4]. Group 2: Financial Commitments - Paramount has increased its termination fee to $5.8 billion from $5 billion, matching the fee offered by Netflix if the deal does not proceed [3]. - The commitment from Larry Ellison includes not revoking the long-standing Ellison family trust, enhancing the credibility of the financing [2]. Group 3: Strategic Positioning - David Ellison emphasized that Paramount's offer is the superior option for maximizing value for WBD shareholders, reinforcing the company's commitment to the acquisition [4].