Warner Bros. Plans to Reject Paramount’s Latest Bid Despite Larry Ellison’s ‘Irrevocable Personal Guarantee’

Warner Bros. Discovery plans to reject Paramount’s revised takeover proposal despite billionaire investor Larry Ellison’s agreement to provide an “irrevocable personal guarantee” backing the $108 billion hostile bid, according to media reports.

Paramount adjusted its hostile takeover bid last week to reassure shareholders of its financing and raise its breakup fee to $5.8 billion, matching Netflix’s offer.

WBD’s board still views its $83 billion deal with Netflix as the better offer. According to the Financial Times, the board has not made a final decision but is expected to reject Paramount’s bid revised bid in a meeting scheduled for next week.

The amended offer comes after WBD’s board rejected Paramount’s all-cash, $30-per-share bid, calling it “inadequate” and “illusory.” The bid marked the studio and newly instated CEO David Ellison’s sixth proposal over the course of 12 weeks.

Paramount’s sixth bid includes a total of $40.7 billion in equity financing, including $11.8 billion from the Ellison family and $24 billion from Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Company, according to a filing with the U.S. Securities and Exchange Commission. 

Jared Kushner’s Affinity Partners had initially agreed to contribute $200 million to Paramount’s bid, but backed out in recent weeks, according to the New York Times. At the time, the Ellisons and Gerry Cardinale’s RedBird Capital Partners agreed to fully backstop 100% of the equity financing through the Ellison family trust.

The bid also includes $54 billion in committed debt financing from Bank of America, Citibank and Apollo Global Management. Roughly $17 billion had been reserved to allow WBD to extend an existing bridge loan. 

A spokesperson for Warner Bros. Discovery did not immediately return TheWrap’s request for comment.

Bloomberg first reported the news.

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