Oracle co-founder Larry Ellison has stepped in to personally guarantee $40.4 billion in financing as Paramount and Skydance renew efforts to prevent Warner Bros Discovery from selling its prized Hollywood assets to streaming giant Netflix.
The guarantee, disclosed in a regulatory filing on Monday, is designed to ease concerns raised by Warner Bros’ board over Paramount’s financing structure and the absence of full backing from the Ellison family. Those concerns had previously tilted Warner Bros toward accepting a rival cash-and-stock offer from Netflix.
Following the disclosure, Warner Bros Discovery shares rose 3.5%, while Paramount gained more than 4%.
Despite the revised proposal, Warner Bros said it would review and consider Paramount’s updated terms but confirmed that its board has not changed its recommendation regarding the Netflix deal. Netflix declined to comment.
Paramount said the amended bid does not alter its $30-per-share all-cash offer, as competition intensifies for control of Warner Bros’ extensive film and television library—an asset viewed as critical in the ongoing streaming wars.
“I doubt many Warner Bros shareholders who were undecided were holding out because of the specific issues addressed in this revised bid,” said Seth Shafer, principal analyst at S&P Global. “The guarantee may reassure the board, but it likely won’t sway all investors.”
As part of the revised terms, Ellison also agreed not to revoke or transfer assets held in the Ellison family trust during the transaction period.
Paramount further raised its regulatory reverse termination fee to $5.8 billion, up from $5 billion, matching Netflix’s competing offer, and extended the expiration of its tender offer to January 21, 2026.
The move follows Warner Bros’ earlier request that shareholders reject Paramount’s $108.4 billion proposal for the entire company—including its cable television assets—citing uncertainty over financing guarantees.
However, several major investors, including Harris Associates, Warner Bros’ fifth-largest shareholder, have said they would consider a revised Paramount offer if it addressed financing concerns and improved deal certainty.
Under the Netflix agreement, Warner Bros would owe $2.8 billion in breakup fees if it withdraws from the deal.
Regulatory hurdles ahead
Regardless of which bid prevails, both transactions face intense antitrust scrutiny in the United States and Europe.
Lawmakers from both parties have voiced concerns over growing consolidation in the media industry, while US President Donald Trump has indicated he plans to weigh in on the proposed deals.
A Paramount–Warner Bros merger would create a media conglomerate larger than Disney and combine two major television operators—an outcome some Democratic senators warn could place “almost everything Americans watch on TV” under one corporate umbrella.
Meanwhile, a Netflix–Warner Bros deal would significantly expand Netflix’s dominance, creating a combined platform with 428 million subscribers worldwide. Netflix has argued the merger would benefit consumers through bundled offerings and preserve theatrical releases.
Netflix co-CEO Ted Sarandos has said he is confident the deal would secure regulatory approval, adding that it could help stabilize an industry grappling with uneven box-office performance and avoid large-scale job losses.
