“Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount,” the company said in a statement, adding that the tech tycoon has agreed “not to revoke the Ellison family trust (which has been operating for nearly 40 years as a counterparty to numerous transactions) or adversely transfer its assets during the pendency of the transaction.”
David Ellison argued that his company’s bid remains the only path that preserves Warner Bros. Discovery as a whole entity, rather than selling it off in parts. Netflix’s planned acquisition would exclude WBD’s Global Networks division, which includes CNN and other cable-native brands, and which WBD had previously announced plans to spin off.
“Our $30 per share, fully financed all-cash offer was on Dec. 4th, and continues to be the superior option to maximize value for WBD shareholders,” David Ellison said in a statement Monday. “We expect the board of directors of WBD to take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future.”
