In a dramatic turn of events that has sent shockwaves through the global media landscape, Oracle co-founder Larry Ellison has stepped forward to personally back Paramount Skydance's ambitious bid for Warner Bros Discovery. The tech billionaire has agreed to guarantee a staggering $40.4 billion in equity financing, a move seen as a game-changer in the high-stakes contest for Hollywood's crown jewels.
A Personal Guarantee to Seal the Deal
The commitment was revealed in a regulatory filing made public on Monday, 22 December 2025. This unprecedented personal guarantee from one of the world's wealthiest individuals is expected to significantly bolster the financial credibility of Paramount Skydance's proposal. It directly addresses concerns previously raised by Warner Bros Discovery's board, which had initially shown resistance to the offer. According to a Reuters report, the board had earlier favoured a different path, potentially with streaming giant Netflix.
Despite this massive financial backing, Paramount Skydance has clarified that the core terms of its offer remain unchanged. The company is sticking to its all-cash bid of $30 per share for Warner Bros Discovery. Ellison's guarantee essentially acts as a powerful safety net, assuring that the equity portion of the enormous financing required for the deal is secure.
Market Reacts with Optimism
The announcement triggered an immediate and positive reaction in the stock market. Investors cheered the development, sending shares of both companies involved on an upward trajectory. In premarket trading following the news, Warner Bros Discovery shares rose by 2.5%, while Paramount Skydance shares climbed approximately 1.6%. This market sentiment underscores the belief that Ellison's involvement adds serious weight and legitimacy to the acquisition attempt.
Intensifying the Streaming Wars
This development marks a critical escalation in the ongoing consolidation frenzy within the media and entertainment industry. The battle for control of valuable content libraries and direct-to-consumer streaming platforms has become fiercer than ever. The winner of this particular contest for Warner Bros Discovery would secure a monumental advantage.
Acquiring Warner Bros Discovery would grant Paramount Skydance access to an enviable and vast content arsenal, including iconic franchises, news networks, and a deep film and television library. This is precisely the kind of asset that media conglomerates are desperately seeking to compete in the global streaming wars. The contest, as noted by observers, continues to intensify with no clear resolution in sight, setting the stage for more twists and turns in the coming days.
The entry of a tech titan like Larry Ellison into the fray, not just as a financier but as a personal guarantor, signals the immense strategic value placed on media assets in the digital age. It highlights how the lines between technology, content, and distribution are blurring, with giants from all sectors vying for dominance in the future of entertainment.
