Oracle co-founder **Larry Ellison has personally pledged a $40.4 billion guarantee to support Paramount Skydance’s amended offer to acquire Warner Bros. Discovery (WBD). The guarantee is intended to address concerns from the Warner Bros. board about the reliability of Paramount’s financing and strengthen Paramount’s position in a competitive deal process that also involves a rival bid from Netflix.

Under the revised terms, Ellison has agreed to personally backstop the substantial portion of the equity financing required for Paramount’s proposal, committing to cover the equity portion of the deal and any related claims. This personal commitment — separate from the Ellison family trust’s backing — is designed to reassure WBD’s board and shareholders that Paramount’s cash offer is fully funded and not contingent on revocable arrangements.

Paramount’s core offer remains a $30 per share all-cash proposal valuing the total transaction at about $108.4 billion, covering all of Warner Bros. Discovery’s business units rather than only parts of the company. To further strengthen its position, Paramount also increased its breakup fee to $5.8 billion and extended the deadline for shareholders to tender their shares to January 21, 2026.

The strategic intent behind the personal guarantee is to counter Warner Bros. Discovery’s earlier objections. WBD’s board had previously rejected Paramount’s bid in favour of a competing agreement with Netflix, partly citing doubts about Paramount’s ability to close the transaction due to financing concerns. By tying Ellison personally to the financing, Paramount aims to eliminate that uncertainty and make its offer more compelling for shareholders.

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Market reaction has already reflected this development: shares of Paramount Skydance and Warner Bros. Discovery both rose following the announcement, while Netflix shares showed modest downward pressure as the competitive dynamics shifted.

Despite this strengthened offer, analysts caution that the board’s support for Netflix’s alternative proposal — which is structured differently and backed by a combination of cash and stock — remains a key factor. The takeover contest is expected to continue through early 2026, with regulatory reviews and shareholder sentiment playing major roles in the final outcome.

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In summary, Ellison’s personal guarantee substantially increases the financial credibility of Paramount’s bid, intensifying one of the most closely watched acquisition battles in the media sector.