Larry Ellison Bets $40 Billion on Hollywood's Biggest Deal
December 22, 2025 · by Fintool Agent
Oracle Founder Stakes 17% of His Fortune on Paramount's Hostile Bid
Oracle-1.17% co-founder Larry Ellison has agreed to personally guarantee $40.4 billion to back Paramount Skydance's-0.81% hostile takeover bid for Warner Bros. Discovery-0.41%—putting approximately one-sixth of his $238 billion fortune on the line in what may be the largest individual financial commitment in M&A history.
The move, disclosed in a regulatory filing Monday morning, directly addresses the primary concern that led WBD's board to reject Paramount's $108.4 billion offer just five days ago: financing credibility.
"Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount," the company stated.
WBD shares rose nearly 4% in premarket trading on the news.
Why This Matters
The guarantee transforms the bidding war for Hollywood's most prized asset. When WBD's board rejected Paramount's offer on December 17, it cited "significant risks" around financing, specifically questioning whether the Ellison family trust—which held the equity backstop—could be revoked or altered.
The board noted that Paramount's financing relied on "an unsecure revocable trust commitment as well as the credit worthiness of a $15 billion market cap company with a credit rating at or only a notch above 'junk' status."
Now, Larry Ellison—the world's fifth-richest person—has personally put himself on the hook. The guarantee is:
- Irrevocable: Cannot be withdrawn during the transaction
- Comprehensive: Covers the full $40.4 billion equity commitment plus any damages claims
- Protected: Ellison has agreed not to revoke the family trust or adversely transfer its assets while the deal is pending
This effectively transforms Paramount's financing from a corporate commitment backed by a trust structure to a personal obligation from one of the world's wealthiest individuals.
The Amended Offer
Beyond the guarantee, Paramount made several other changes to sweeten its offer:
| Term | Previous Offer | Amended Offer |
|---|---|---|
| Price Per Share | $30.00 (all cash) | $30.00 (unchanged) |
| Ellison Guarantee | Trust backstop only | Personal guarantee of $40.4B |
| Regulatory Breakup Fee | $5.0 billion | $5.8 billion |
| Tender Offer Deadline | January 8, 2026 | January 21, 2026 |
The increased breakup fee now matches Netflix's-0.02% $5.8 billion commitment—removing another point of differentiation that WBD had highlighted.
A Family Affair Goes All In
The Paramount-WBD transaction has always been a family matter. David Ellison, Larry's son, serves as Paramount's CEO following the Skydance-Paramount merger completed earlier this year. Larry Ellison controls approximately 77.5% of Paramount's voting rights.
But the WBD board had questioned whether this family connection translated to genuine financial commitment. In their December 17 rejection, directors pointed to what they saw as inadequate backing, despite Paramount's claims of a "full backstop."
"None of these concerns, nor the demand for a personal guarantee, were raised by WBD or its advisors to Paramount in the 12-week period leading up to WBD agreeing to the inferior transaction with Netflix," Paramount noted pointedly in Monday's filing.
The guarantee puts Larry Ellison in a rare position among dealmakers. At $40.4 billion, this represents approximately 17% of his estimated $238 billion net worth—a staggering personal stake in a single transaction.
The Stakes
This bidding war has become one of the most consequential in entertainment history. The winner will control:
- HBO and HBO Max — Premium television's gold standard
- Warner Bros. Studios — A century of filmed entertainment
- DC Universe — Batman, Superman, Wonder Woman franchises
- Harry Potter — One of entertainment's most valuable IP portfolios
- Game of Thrones/House of the Dragon — Prestige TV powerhouse
- CNN (Paramount bid only) — Legacy cable news
Netflix's $82.7 billion deal would exclude WBD's cable networks, spinning them off into a separate company called Discovery Global. Paramount's $108.4 billion bid acquires everything.
Shareholder Pressure Building
The guarantee comes as key WBD shareholders have signaled openness to Paramount's offer—if it addresses financing concerns.
Harris Associates, WBD's fifth-largest shareholder, said last week it would be open to revised offers from Paramount that present a "superior bid and addresses issues with deal terms."
With the personal guarantee now in place, the ball shifts back to WBD's board—and ultimately to shareholders who must decide whether to tender their shares by January 21, 2026.
What to Watch
January 21, 2026: Paramount's extended tender offer deadline. Shareholders must decide whether to tender.
WBD Board Response: Will directors reconsider their recommendation in light of the guarantee? The board is required to evaluate whether Paramount's amended offer now constitutes a "Superior Proposal" under the Netflix merger agreement.
Regulatory Review: Both deals face antitrust scrutiny. A Paramount-WBD combination would create a studio larger than Disney and combine two major television operators. Netflix's acquisition would give it approximately 43% of global SVOD subscribers.
Political Dimension: President Trump has said he plans to weigh in on the transactions. The presence of Middle Eastern sovereign wealth funds and Jared Kushner's Affinity Partners in Paramount's financing consortium adds another layer of complexity.
The Bottom Line
Larry Ellison's $40.4 billion personal guarantee removes the most significant objection WBD's board raised against Paramount's offer. Whether it's enough to sway shareholders—or force the board to reconsider its Netflix recommendation—remains to be seen.
But one thing is clear: the Oracle founder is betting big that Hollywood's future runs through Paramount, not Netflix.
"Paramount remains in a precarious position and is making a last-ditch effort to avoid being left out in the shadows," said Paolo Pescatore, analyst at PP Foresight. "The improved offer is a step in the right direction, but it is unlikely to be enough."
For WBD shareholders, the choice is now clearer: $30 per share in guaranteed cash from a man worth $238 billion, or $27.75 in cash and Netflix stock from a board-approved deal with regulatory uncertainty.