Warner: Larry Ellison steps in with personal guarantee

In the fiercely contested takeover battle for Hollywood giant Warner Bros. Discovery, Oracle co-founder Larry Ellison has taken an unusually bold step: he has personally guaranteed around 40.4 billion US-dollars in equity to strengthen the recently revised acquisition bid by the Paramount Skydance Alliance. The move is intended to dispel doubts about the financial backbone of the offer and ensure the consortium remains a serious contender against rival bidder Netflix.

Warner Bros. had previously stated that Paramount’s original proposal was attractive but insufficiently secured, and therefore not recommended by the company’s leadership. In particular, there was no firm guarantee covering the portion of capital coming from Ellison’s side. With Ellison’s personal guarantee – coming from one of the richest men in the world – exactly this gap is now being addressed. He guarantees the equity share and potential damages, which supporters describe as a powerful sign of reliability and commitment to Warner shareholders.

Analysts see the move not only as a financial reinforcement, but also as a psychological signal in a highly competitive takeover race. With an alternative offer from Netflix still on the table, every action that builds confidence and reduces uncertainty among decision-makers could prove decisive. Shares of both Paramount Skydance and Warner Bros. Discovery reacted positively, underscoring that markets view the added backing as a strong stabilizing factor.

Media landscape in transition: Hollywood, streaming and shifting power structures

This deal goes far beyond a conventional corporate transaction. It illustrates how digital capital, traditional media assets and global investments are converging in a rapidly transforming marketplace. Warner Bros. Discovery controls an immense portfolio of franchise rights, film and series libraries, and broadcast assets including CNN. Any change in ownership – and the question of who ultimately controls content, production power and streaming monetization – carries far-reaching implications for the entire industry.

The process is also attracting political attention. US President Donald Trump has repeatedly hinted that a change of ownership at CNN would be desirable, highlighting once again how deeply intertwined media power, politics and economics have become.

SK