Paramount Renews $40B Bid for Warner Bros with Larry Ellison’s Support
The entertainment landscape is witnessing intense competition for Warner Bros. Discovery (WBD) as Paramount Skydance has renewed its acquisition bid. This recent offer is backed by a significant financial commitment from billionaire Larry Ellison.
Paramount’s Renewed $40B Bid
On Monday, Paramount Skydance announced an amended all-cash offer valued at $40.4 billion for Warner Bros. Discovery. This offer is now accompanied by a personal guarantee from Larry Ellison, the co-founder of Oracle. His backing aims to bolster Paramount’s chances against rival bidders, including streaming giant Netflix.
Details of the Offer
- Paramount’s bid is highlighted by an “irrevocable personal guarantee” from Larry Ellison.
- The offer is designed to address WBD’s prior concerns regarding financing.
- David Ellison, Larry’s son and CEO of Paramount Skydance, is leading the initiative.
Previously, WBD’s board rejected Paramount’s initial $108.4 billion bid. The earlier bid proposed $30 per share but was dismissed as “illusory” since WBD favored a deal with Netflix. On December 5, this previous arrangement with Netflix was valued at $27.75 per share, amounting to an overall enterprise value of $82.7 billion.
Background of the Bidding War
This renewed offer follows multiple rejections from WBD. Reports indicate that prior to the Netflix deal, WBD had already turned down three different acquisition proposals from Paramount. David Ellison emphasized that Paramount’s dedication is focused on acquiring WBD for the benefit of its shareholders. His statements highlighted the belief that their all-cash offer would maximize value.
The Future for Warner Bros. Discovery
David Ellison noted that acquiring WBD would enhance content production and theatrical release capabilities. He urged WBD’s board to recognize the potential benefits of this transaction for all stakeholders. As this bidding war continues, the entertainment industry watches closely to see how it unfolds.
El-Balad will keep you updated on further developments regarding this significant acquisition attempt in Hollywood.
