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Paramount Strengthens Hostile Bid for Warner Bros. with $40 Billion Guarantee

KVIA•Monday, December 22, 2025 at 2:14 PM•CNN Newsource

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Paramount has intensified its hostile takeover bid for Warner Bros. Discovery, with Larry Ellison personally guaranteeing $40.4 billion for the transaction. This comes after Warner Bros. rejected multiple offers from Paramount in favor of a more lucrative proposal from Netflix. To address concerns about the legitimacy of its financing, Paramount has committed to transparency regarding Ellison's family trust, which holds significant Oracle shares. The offer includes a breakup fee increase to $5.8 billion, matching Netflix's proposal. Despite these changes, it remains uncertain whether Warner Bros.' board will reconsider its stance, as shareholders have the power to challenge the board's recommendations.

Key Details: • Larry Ellison guarantees $40.4 billion for Paramount's bid. • Paramount's breakup fee increased to $5.8 billion. • Warner Bros. board has previously rejected Paramount's offers. • Shareholders can vote against the board's recommendation regarding the deal. • Paramount's offer values Warner Bros. at $30 per share.

entertainment finance paramount warner-bros mergers

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Warner Bros. DiscoveryLarry EllisonDavid EllisonParamountNetflix

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Paramount Boosts Hostile Bid for Warner Bros. Discovery with Major Guarantee

Paramount Pictures has escalated its hostile takeover attempt for Warner Bros. Discovery by announcing that tech mogul Larry Ellison will personally guarantee $40.4 billion to fund the acquisition. Despite repeated rejections from Warner Bros.' board, which favors a Netflix offer, Paramount aims to address concerns about its financing credibility by revealing details of Ellison's family trust. The new proposal includes a breakup fee increase to $5.8 billion, aligning with Netflix's offer. With shareholders having a significant role in the decision, the outcome remains uncertain as Warner Bros. continues to evaluate both offers amidst rising stock prices for all parties involved.