Summary
Paramount updated its offer to buy Warner Bros. Discovery by securing a $40.4 billion guarantee from Larry Ellison, chairman of Oracle. There was concern from Warner Bros. about previous funding promises from a family trust. Paramount has not raised its price offer but extended the deadline for Warner Bros. shareholders to agree to the offer.
Key Facts
- Paramount made a takeover bid for Warner Bros. Discovery with backing from Larry Ellison.
- Larry Ellison is offering a $40.4 billion personal guarantee for the bid.
- Warner Bros. previously rejected the bid, questioning the reliability of funding from a family trust.
- David Ellison, Larry's son, agreed not to revoke or change the family trust's assets during the deal.
- Paramount's bid maintains a $30-per-share offer, higher than Netflix's offer of $27.75 per share.
- Paramount values Warner Bros. Discovery at about $108 billion.
- Paramount increased its proposed breakup fee to $5.8 billion, matching Netflix's offer.
- The deadline for Warner Bros. shareholders to tender their shares is now extended to January 21.
