The war over the future of Warner Brothers continues as Paramount Skydance on Monday announced a modified cash offer for the legacy movie studio. The offer includes an “irrevocable personal guarantee” from a major backer, Oracle billionaire Larry Ellison, to provide tens of billions in equity financing for the deal. It’s the latest move by Ellison’s son David Ellison — the CEO of Paramount Skydance — to fend off a potential takeover by his rival, streaming giant Netflix.
“Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offering and any claims for damages against Paramount,” a Paramount press release which was published on Monday. The proposed equity financing was previously included in Paramount’s bid, but the elder Ellison’s “personal guarantee” is new, the press release said.
The renewed bid comes just a week after WBD’s board rejected Paramount’s original offer, favoring instead an earlier deal with Netflix. This deal was announced on December 5outlining how the streamer would buy the movie studio through a cash and stock option worth $27.75 per WBD share and a total enterprise value of $82.7 billion.
Three days after announcing the Netflix deal, Paramount launched a $108.4 billion hostile bid, offering $30 per share. WBD’s board rejected this offer, calling it “fraudulent” and claiming that Paramount had misled shareholders about the financing of the proposed deal. At the time of the rejection, the board noted that the Netflix deal was “a binding agreement with enforceable covenants, without any need for equity financing and strong debt commitments.”
Now, Paramount’s amended offer is designed to “address WBD’s stated concerns about Paramount’s superior offer,” Paramount said. In October, CNBC stated thatprior to the Netflix deal, WBD had previously turned down three different takeover offers from Paramount.
“Paramount has repeatedly demonstrated its commitment to acquiring WBD,” Paramount Skydance CEO David Ellison said in a Monday press release. “Our $30 per share, all-cash offer was on December 4th 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 to all WBD stakeholders, as a catalyst for greater content production, greater theatrical performance and more consumer choice.”
He added: “We expect WBD’s board to take the necessary steps to secure this value-enhancing transaction and preserve and enhance an iconic Hollywood treasure for the future.”
TechCrunch contacted Warner Bros. Discovery for comments.
