Paramount Skydance announced on Monday that it has secured the backing of billionaire Larry Ellison in its revised bid for Warner Bros. Discovery, addressing concerns raised by WBD’s board. The company confirmed that Ellison, the father of Paramount CEO David Ellison, has pledged an irrevocable personal guarantee of $40.4 billion for the equity financing involved in the offer, as well as protection against any damages claims against Paramount.
The offer from Paramount is for $30 per share in cash, marking a competitive move against an agreement that Warner Bros. Discovery has struck with Netflix, valued at approximately $83 billion on an enterprise basis. This high-stakes endeavor aims to acquire all of WBD’s assets, including its television networks, with Paramount asserting that their proposal carries an enterprise value of $108.4 billion.
In response to earlier skepticism from WBD’s chairman Samuel Di Piazza regarding Ellison’s financial commitment, Paramount has emphasized its confidence in the transaction. Di Piazza previously highlighted a lack of assurance about the availability of such substantial backing upon closing the deal.
While Paramount has not adjusted its initial bid, it has made adjustments to the proposed reverse breakup fee to align with Netflix’s offer, illustrating its determination to portray its proposal as the superior choice. Gerry Cardinale, managing partner of RedBird Capital Partners, expressed that the recent amendments were aimed at clarifying the offer’s details and bolstering its credibility.
As this bidding war evolves, the implications for the entertainment landscape are significant, with major players vying for dominance in a rapidly changing industry. The outcome of this contest could shape future creative content development and distribution strategies, keeping industry stakeholders and audiences on the edge of their seats.