Paramount Skydance has made a revised offer of $108 billion to acquire Warner Bros. Discovery, now enhanced by a personal guarantee of $40.4 billion from Larry Ellison, founder of Oracle and supporter of Skydance. This new development follows WBD's recommendation on December 17 for shareholders to reject Paramount's initial proposal, which was deemed not beneficial compared to a prior $82.7 billion deal with Netflix.
The amended proposal includes assurances that Ellison will not transfer or revoke assets from his family trust during the acquisition process. Paramount previously faced criticism for not providing a sufficient guarantee, which WBD stated was essential to consider any offer.
Despite the update, Paramount expressed dissatisfaction, highlighting that WBD did not communicate concerns regarding the adequacy of their offer during the 12 weeks leading up to their agreement with Netflix. David Ellison reiterated that Paramount's $30 per share cash offer remains the best option for maximizing value for WBD shareholders, asserting that their acquisition would drive growth and enhance content production.