Paramount Skydance Corporation (PSKY) announced that Oracle co‑founder Larry Ellison has pledged an irrevocable personal guarantee of $40.4 billion to back the equity portion of its all‑cash $108 billion offer for Warner Bros. Discovery (WBD). The guarantee replaces the earlier reliance on the Ellison family’s revocable trust and directly addresses the financing uncertainty that led WBD’s board to favor Netflix’s competing $82.7 billion deal.
The guarantee covers the equity financing that Paramount has secured from sovereign wealth funds, private‑equity investors, and other institutional backers. By putting his personal wealth on the line, Ellison removes a key source of risk for WBD shareholders and regulators, making the bid more credible and potentially increasing the likelihood of acceptance. The move also signals that the Ellison family is willing to commit significant personal capital to the transaction.
Paramount’s recent financial performance has shown a resilient balance sheet and steady cash flow, enabling it to pursue large‑scale acquisitions. While the company’s latest earnings were in line with analyst expectations, its diversified funding base—comprising sovereign wealth funds, private‑equity partners, and institutional investors—provides a robust foundation for the $108 billion offer.
The announcement follows the withdrawal of Jared Kushner’s Affinity Partners from the financing package, which had previously added uncertainty to the deal’s funding structure. Affinity’s exit further consolidates the financing framework and underscores the confidence of the remaining investors.
Investors reacted positively to the guarantee, reflecting increased confidence in the deal’s feasibility. The announcement also intensifies the competition between Paramount Skydance and Netflix, as Paramount now offers a fully financed, all‑cash bid that directly addresses WBD’s financing concerns. The guarantee strengthens Paramount’s position in the Hollywood merger race and could shift the balance of power in favor of the company that can deliver the most secure and comprehensive offer.
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