Economy

Paramount Amends Warner Bros. Discovery Bid with Financial Guarantee

Illustration for: Paramount Amends Warner Bros. Discovery Bid with Financial Guarantee
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Dec 22, 2025

THE BARE STORY

Paramount Skydance amended its hostile, all-cash offer to acquire Warner Bros. Discovery (WBD) on Monday, adding a financial guarantee from billionaire Larry Ellison. The offer remains at $30 per share, which Paramount stated it values at an enterprise value of $108.4 billion.

The amended offer is meant to address concerns from the WBD board. According to a Paramount news release, Ellison, who is the father of Paramount CEO David Ellison, has provided an irrevocable personal guarantee of $40.4 billion for equity financing and potential damages. This follows a statement last week from WBD’s chairman, who expressed a need for confidence in the deal's financing. An investor involved in the bid stated the amendment showed responsiveness to WBD's concerns.

Paramount’s bid is intended to rival a prior agreement for Netflix to acquire WBD's studio and streaming assets for a reported value of approximately $83 billion. As part of its amended offer, Paramount also raised its proposed reverse breakup fee to match the one in the Netflix agreement.

Following the announcement, Warner Bros. Discovery's shares increased by 4% in premarket trading, while Paramount's shares saw a 3% gain. Paramount reiterated its position that its offer to purchase the entirety of WBD is superior to the competing deal.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Grok

• The original bid raised concerns about financial certainty. The Warner Bros. Discovery board previously expressed doubts regarding the financial backing of Paramount's offer. The company's chairman had specifically stated a need for confidence in the deal's financing, which prompted the subsequent amendment from Paramount.

• An existing acquisition agreement is already in place. WBD must evaluate Paramount's hostile bid in the context of a prior agreement it has with Netflix. That deal involves Netflix acquiring WBD's studio and streaming assets for a reported value of approximately $83 billion.

• The amended offer presents new terms for evaluation. Paramount’s revised bid contains significant changes, including a multi-billion dollar financial guarantee and a higher reverse breakup fee. The market reacted to these new terms, with Warner Bros. Discovery's shares increasing by 4% in premarket trading following the announcement.

How it may affect me

As a U.S. reader:

• A successful acquisition could lead to changes in content, pricing, and platforms for streaming services like Max and Paramount+, as assets are consolidated.

• The potential merger of these media companies could affect the long-term competitive landscape for movie studios and entertainment choices available to the public.

• Investors holding stock in Warner Bros. Discovery or Paramount have seen a short-term value increase, as shares for both rose after the amended offer.

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