Larry Ellison guarantees $40.4 billion in Paramount's hostile bid for Warner Bros. Discovery

Core Viewpoint - Paramount is enhancing its hostile takeover bid for Warner Bros. Discovery by securing an irrevocable personal guarantee from Larry Ellison, who is committing $40.4 billion to support the deal for his son's company [1][2]. Group 1: Financial Commitments - Larry Ellison has agreed to be responsible for $40.4 billion of equity financing for Paramount's offer, along with any damage claims [1]. - Paramount is increasing its breakup fee to $5.8 billion if the deal is blocked by regulators, matching Netflix's proposed transaction [2]. Group 2: Offer Details - Paramount's offer remains at $30 per share, with a total valuation of $77.9 billion for Warner's properties, excluding debt [3]. - The deadline for shareholders to tender their shares has been extended to January 21 [3]. Group 3: Competitive Landscape - Warner's board has criticized Paramount's offer, urging shareholders to support a cash-and-stock deal with Netflix valued at $72 billion [3][4]. - Despite the criticism, Paramount maintains that its offer is superior for maximizing value for Warner Bros. Discovery shareholders [3]. Group 4: Market Reaction - Shares of Paramount-Skydance rose nearly 7% in morning trading, while Warner Bros. Discovery stock increased by over 2%, and Netflix shares fell by almost 0.7% [4].