Paramount Doubles Down on Warner Bros With Ellison’s $40B Backing
In a dramatic escalation of Hollywood’s biggest corporate battle, Paramount Skydance has relaunched its bid for Warner Bros. Discovery (WBD)—this time with an ironclad commitment from tech titan Larry Ellison. The newly amended offer includes a $40.4 billion personal guarantee from Ellison, Oracle’s founder and one of the world’s wealthiest individuals, aimed squarely at silencing WBD board concerns over financing credibility. This move comes just days after WBD rejected Paramount’s earlier $108.4 billion hostile takeover attempt in favor of a $82.7 billion deal with Netflix.
The updated bid is a strategic counterpunch designed to reframe the narrative: Paramount isn’t just offering more cash—it’s now backed by one of the most formidable financial guarantees in media merger history.
Why Warner Bros Shareholders Are Watching Closely
For Warner Bros shareholders, the stakes couldn’t be higher. Paramount’s revised $30-per-share all-cash offer significantly outpaces Netflix’s $27.75-per-share mix of cash and stock. More importantly, the inclusion of Larry Ellison’s irrevocable guarantee addresses the core objection that sank Paramount’s previous proposal: doubts over whether the financing was real or “illusory,” as the WBD board put it.
With Ellison’s name—and net worth—now formally attached to the deal, skepticism around funding evaporates. That could force WBD’s board to reconsider, especially as activist investors and major shareholders begin weighing which offer truly maximizes long-term value.
Netflix’s Deal Suddenly Looks Less Secure
Just over two weeks ago, Netflix appeared to have sealed the deal of the decade. Its partnership with WBD promised a streaming-first future, bundling HBO, Max, and Warner’s vast film library into Netflix’s growing ecosystem. The agreement was touted as “binding” and “fully committed,” with no reliance on outside equity—a key selling point at the time.
But Paramount’s aggressive counter, now bulletproofed by Ellison’s backing, exposes a vulnerability: Netflix’s offer may be safe, but it’s not superior. In an era where theatrical releases and content ownership still drive Hollywood’s bottom line, Paramount’s promise of “greater theatrical output” and “more consumer choice” resonates with creatives, exhibitors, and traditionalists alike.
David Ellison’s High-Wire Act
David Ellison, CEO of Paramount Skydance and son of Larry Ellison, is betting his legacy on this acquisition. Having already poured billions into revitalizing Paramount’s film slate—from “Top Gun: Maverick” to the upcoming “Mission: Impossible” installments—he sees Warner Bros as the missing piece in a vertically integrated studio powerhouse.
In Monday’s statement, David Ellison didn’t just reiterate his offer—he framed it as a cultural imperative. “Preserve and strengthen an iconic Hollywood treasure,” he urged, invoking nostalgia and national pride in a way Netflix’s data-driven pitch never could. It’s a savvy emotional play in an industry where legacy still carries weight.
The $108 Billion Question: Cash vs. Stock
At the heart of this battle lies a fundamental divide in valuation philosophy. Netflix’s offer includes stock—meaning WBD shareholders would become partial owners of a streaming platform whose growth is slowing and facing saturation. Paramount’s all-cash bid, by contrast, offers immediate, tangible value with no market risk.
In today’s volatile economy, that certainty is golden. With interest rates still elevated and tech stocks unpredictable, many institutional investors may now view Paramount’s offer as not just richer, but safer. That shift in perception could be enough to sway the board—or trigger a shareholder revolt.
Regulatory Hurdles Loom Large
Even with Ellison’s backing, the road to closing remains treacherous. A merger of this scale would face intense scrutiny from antitrust regulators. Both Paramount and Warner Bros are major content producers and distributors, and combining them could raise concerns about reduced competition in film, TV, and streaming.
Still, Paramount may argue that consolidation is necessary to compete with tech giants like Amazon and Apple, who operate with virtually limitless capital. Regulators might see a merged Paramount-Warner as a necessary counterbalance in a media landscape increasingly dominated by non-traditional players.
What This Means for Hollywood’s Future
Beyond boardrooms and balance sheets, this battle signals a turning point for the entertainment industry. The Paramount-Warner vision champions theatrical releases, creator partnerships, and studio-driven storytelling. Netflix’s model prioritizes global scale, algorithmic content, and subscription retention.
Whichever path WBD chooses could shape Hollywood’s creative and financial trajectory for decades. Will the future be driven by box office receipts and Oscar campaigns—or by engagement metrics and regional viewing trends? The answer may soon be written in Delaware court filings and shareholder votes.
Time Is Running Out for WBD’s Board
The WBD board now faces mounting pressure to justify its Netflix preference. With a fully financed, higher-value alternative on the table—and backed by one of the world’s wealthiest individuals—sticking with Netflix could expose directors to legal challenges from shareholders claiming they failed their fiduciary duty.
Historically, boards that reject superior offers without compelling justification have faced lawsuits. Paramount’s legal team is surely preparing for that scenario, even as David Ellison appeals to the board’s sense of legacy and stewardship.
A New Chapter for Two Studio Titans
Paramount and Warner Bros are more than corporations—they’re cultural institutions. From “Casablanca” to “The Dark Knight,” their libraries define generations of cinema. The prospect of uniting them under one roof, with renewed investment and a shared production pipeline, excites not just investors but filmmakers, actors, and fans.
If the deal succeeds, it could usher in a renaissance of blockbuster filmmaking, with deeper resources and restored confidence in the theatrical experience. If it fails, Warner Bros may become just another content supplier in Netflix’s vast catalog—valuable, but no longer sovereign.
The Ball Is in Warner Bros’ Court
As of Tuesday, December 23, 2025, the WBD board has not issued a new statement on Paramount’s revised offer. But silence won’t last long. Shareholders are demanding answers, the media is watching, and Larry Ellison’s name has changed the game entirely.
One thing is clear: the era of passive studio ownership is over. In the battle for Warner Bros, money, vision, and legacy are colliding—and Hollywood may never be the same.
