In a huge deal that mixes tech money with movie magic, Oracle founder Larry Ellison has agreed to personally back $40.4 billion for Paramount Skydance’s offer to buy Warner Bros. Discovery (WBD). This promise strengthens the bid and demonstrates their seriousness about forming a partnership in the entertainment world.
The updated offer came out on Monday. It gives WBD shareholders $30 in cash for each share they own. This puts the total value of WBD at about $85 billion when you include its debt. But some reports say the full deal could be worth up to $108 billion. The big news is Ellison’s “irrevocable personal guarantee,” which means he is on the hook for that $40.4 billion if needed. This covers almost half of the money required for the deal. It helps ease any fears about whether the bid can really happen, especially since Netflix has been talking about working with WBD.
Larry Ellison is one of the richest people in the world, with a net worth of over $250 billion. He started Oracle, a company that makes software for databases and cloud services. Now, at 81 years old, he’s using his wealth to help his family in the movie business. His son, David Ellison, is the CEO of Skydance Media. Skydance is known for making blockbuster movies like Top Gun: Maverick, which made over $1.5 billion at the box office, and the Mission: Impossible series with Tom Cruise. Earlier this year, Skydance merged with Paramount Pictures to create Paramount Skydance, or PSKY. This new company wants to grow even bigger by buying WBD.
Why go after WBD? Warner Bros. Discovery owns famous brands like HBO, CNN, DC Comics, and the Harry Potter world. It also runs the Max streaming service. But WBD has been struggling with a lot of debt from past mergers and the shift away from cable TV. Its stock price has dropped a lot in recent years. Paramount Skydance thinks combining with WBD would create a super-strong media giant that can compete better in the streaming wars against companies like Disney, Netflix, and Amazon.
This bid is “hostile,” which means it’s not welcomed by WBD’s leaders right now. They have been in talks with Netflix about a possible partnership, maybe sharing content or teaming up on streaming tech. To make their offer more attractive, Paramount raised the “break fee” to $5.8 billion. That’s the money WBD would get if the deal falls apart after they agree to it. Experts say this could push WBD’s board to think hard about the cash offer instead of sticking with Netflix’s ideas.
Ellison’s role is personal. He shared details about his family trust to prove he can cover the $40.4 billion. This isn’t just a check from Oracle; it’s his own money on the line. People in the industry are buzzing about it. One analyst said it “nullifies doubts” about the financing. Could this lead to a bidding war? Netflix might decide to make its own full offer to buy WBD. Or maybe other big players like Apple or Comcast jump in.
Also Read: The $315 Billion Write-Off: Why Markets Are Punishing Oracle’s “Win of the Century”
From a tech point of view, this deal shows how Silicon Valley is diving deeper into Hollywood. Ellison’s Oracle has strong cloud tech that could help manage huge amounts of data for streaming services. A combined Paramount-WBD could use AI and big data to suggest better shows, make ads smarter, and cut costs. It might even rival Disney+ or Prime Video in size and tech. But there are big risks. Government rules might block the deal because it could make the media market less competitive. Plus, both companies have a lot of debt already, and people are cutting the cord from traditional TV faster than ever.
The entertainment world has seen big changes lately. Paramount’s merger with Skydance happened after a long fight for control, where David Ellison beat out other buyers. WBD came from the merger of WarnerMedia and Discovery in 2022, but it hasn’t gone smoothly. If this bid wins, it could create a new powerhouse with movies, TV, news, and sports all under one roof.
As things heat up, everyone is watching. Will WBD say yes to the cash? Will Netflix fight back? Or will regulators stop it all? One thing is clear: With billionaires like Larry Ellison betting big, the future of media is getting more exciting and unpredictable. Stay tuned for updates on this massive deal.
