World's third richest billionaire Larry Ellison offers $40B personal guarantee for son's bid for Warner Bros

By AFP December 22, 2025 | 10:35 pm PT

Oracle co-founder Larry Ellison delivers a keynote at the Moscone Center in San Francisco during the Oracle OpenWorld 2011 on Oct. 2, 2011 in California. Photo by AFP

World's third richest man Larry Ellison is offering a US$40.4 billion personal guarantee to back a hostile bid by Paramount, run by his son David, for Warner Bros. Discovery.

The amended proposal, worth a total $108 billion from Paramount, addresses concerns raised by Warner Bros' board, which saw the bid as too risky and asked shareholders to accept a competing buyout offer from Netflix.

Netflix shocked the industry on Dec. 5 by announcing it had sealed an agreement to buy the film and television studio and HBO Max streaming business for nearly $83 billion, the entertainment industry's biggest consolidation deal this decade.

Three days later, Paramount -- whose CEO is David Ellison, son of Larry Ellison, an ally of President Donald Trump -- launched an all-cash tender offer valuing the entertainment giant at $108.4 billion.

But Warner Bros last week described the Paramount offer as risky, saying it was backed by "an unknown and opaque revocable trust" and involved "no Ellison family commitment of any kind."

Warner Bros Discovery also stressed the dependence of the Paramount offer on foreign investors -- $24 billion of the financing comes from Middle East sovereign wealth funds -- which could require further government approval.

Paramount's amended proposal is meant to address those concerns and also increases the breakup fee to match Netflix's $5.8 billion, which would be payable to Warner Bros if its offer does not clear regulatory review.

"Paramount has repeatedly demonstrated its commitment to acquiring WBD," said David Ellison. "Our $30 per share, fully financed all-cash offer... continues to be the superior option to maximize value for WBD shareholders."

Unlike Netflix's offer, Paramount's bid includes the buyout of cable channels such as CNN, TNT, TBS and Discovery -- which would be added to its group of TV assets like CBS, MTV and Comedy Central.

The bidding war that will reshape Hollywood and U.S. media has drawn White House attention.

Trump has repeatedly weighed in, saying Netflix's deal "could be a problem" as it would leave Netflix with a huge market share of the film and TV industry.

But he has also railed against coverage of the White House from Paramount-owned CBS News, saying neither bidder for Warner Bros had his preference.

He has stressed the importance that CNN gets new ownership as part of the Warner Bros sale, targeting the outlet he has long criticized for what he calls "fake news."