Paramount Skydance has intensified its pursuit of Warner Bros. Discovery (WBD), submitting an amended all-cash offer that includes a substantial personal guarantee from Oracle billionaire Larry Ellison. This latest move, led by David Ellison, CEO of Paramount Skydance, aims to secure the coveted Hollywood studio amidst a fierce acquisition battle, primarily against streaming giant Netflix.
The revamped proposal features an "irrevocable personal guarantee" from Larry Ellison, committing $40.4 billion in equity financing for the deal and any potential damage claims against Paramount. This personal backing is a new addition to Paramount's offer, as confirmed by a Paramount press release published Monday, designed to bolster confidence in the financing structure.
This renewed bid comes just a week after the WBD board rejected Paramount's initial offer, having previously favored a deal with Netflix. The streaming giant's agreement, announced on December 5, outlined a plan to acquire the movie studio through a cash and stock option valued at $27.75 per WBD share, totaling an enterprise value of $82.7 billion.
Three days after Netflix's announcement, Paramount launched a "hostile bid" valued at $108.4 billion, offering $30 per share. However, the WBD board rejected this offer, labeling it "illusory" and raising concerns about Paramount's proposed financing. At the time, the board underscored that the Netflix deal represented "a binding agreement with enforceable commitments, with no need for any equity financing and robust debt commitments."
Paramount stated that its amended offer is specifically designed to "address WBD's stated concerns regarding Paramount's superior offer." This isn't Paramount's first attempt to acquire WBD; CNBC reported in October that WBD had rejected three prior takeover offers from Paramount even before the Netflix deal came to light.
In Monday's press release, Paramount Skydance CEO David Ellison reaffirmed his company's commitment. "Paramount has repeatedly demonstrated its commitment to acquiring WBD," Ellison stated. "Our $30 per share, fully financed all-cash offer was on December 4, and continues to be, the superior option to maximize value for WBD shareholders. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater theatrical output, and more consumer choice." He further urged the WBD board to "take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future."
TechCrunch has reached out to Warner Bros. Discovery for comment on the latest development.
