Larry Ellison Backs $40.4 Billion Financing for Paramount's Bid to Acquire Warner Bros Discovery
Larry Ellison will personally backstop about $40.4 billion in equity financing for Paramount Skydance's bid to acquire Warner Bros Discovery (WBD). Paramount's $108.4 billion hostile takeover offer aims to acquire the entire WBD company, including CNN, Cartoon Network, and Discovery, rather than just selected assets.
Warner Bros Discovery urged shareholders to reject Paramount's bid, having previously agreed to Netflix's $82.7 billion deal for its movie studios, HBO, and streaming assets. WBD's board considers Paramount's offer inadequate due to significant risks and costs involved.
The Ellison-backed financing is intended to address WBD's concerns regarding financial flexibility and to provide a backstop for the proposed deal. Outside funding reportedly includes Affinity Partners, Saudi Public Investment Fund, and Qatar Investment Authority, although Affinity Partners, led by Jared Kushner, stepped back last week.
In morning trading, WBD's stock rose about 2.8%, Paramount's shares increased around 7%, while Netflix declined approximately 0.8%. Gerry Cardinale of RedBird Capital emphasized that the amended filing clarifies Paramount's offer and stressed that shareholders, not the board or CEO, own the company. Paramount continues to maintain that its bid is the superior option for WBD shareholders.
