David Ellison kicks in a few billion more as he makes his 9th bid for Warner Bros. Discovery

Core Viewpoint - Paramount's CEO David Ellison is making a renewed attempt to acquire Warner Bros. Discovery (WBD) after previous offers were rejected, maintaining the bid at $30 per share while introducing new terms to enhance the offer's attractiveness to WBD shareholders [1][2]. Offer Details - Paramount's adjusted offer remains at $30 per share, but includes a "ticking fee" of $0.25 per share, amounting to approximately $650 million, payable to WBD shareholders for each quarter the deal remains unclosed until January 2027 [9]. - The total equity backing for the offer is $43.6 billion, fully supported by the Ellison family, with Larry Ellison being a significant financial figure due to his co-founding of Oracle [2]. Competitive Landscape - WBD is currently in negotiations to sell its streaming and studio assets to Netflix for $27.75 per share, which does not include its cable channels [2]. - Netflix has positioned itself as a favorable option for WBD shareholders, claiming that a merger would "create and protect jobs," and has been actively engaging in discussions regarding the regulatory process [8]. Regulatory Considerations - Ellison's offer aims to demonstrate confidence in the regulatory approval process, with the expectation that the deal will close smoothly [6]. - Former President Trump has stated he will not involve himself in the regulatory decisions regarding the Netflix-WBD deal, leaving it to the Department of Justice [7]. Market Reactions - There is speculation of a potential bidding war between Paramount and Netflix, which could increase the acquisition cost of WBD by $5 billion to $10 billion, although such a bidding war has not yet materialized [11]. - Ellison has argued that Paramount's bid is superior to Netflix's, despite not increasing the overall purchase price since the Netflix deal was announced [9][10].