The Oracle Connection: Larry Ellison’s $40bn Guarantee Not Enough?

Despite a massive $40 billion personal guarantee from Oracle co-founder Larry Ellison, Paramount Skydance’s bid for Warner Bros Discovery is struggling to gain traction against Netflix. Netflix is now planning to switch to an all-cash offer for its $83 billion acquisition of WBD, aiming to decisively beat the Ellison-backed hostile takeover attempt.
Paramount’s total bid stands at $108.4 billion, significantly higher than Netflix’s offer. However, WBD’s board has rejected it as “inadequate,” pointing to the heavy debt load the company would incur. In contrast, Netflix’s all-cash proposal for WBD’s studio and streaming assets offers immediate liquidity without the leverage risks associated with the Paramount deal.
The corporate battle has escalated to the boardroom level, with Paramount planning to nominate directors to WBD’s board to oppose the Netflix transaction. Netflix’s move to expedite the deal with cash is a direct counter-strategy to this governance challenge, hoping to close the sale before any board changes can occur.
While the financial battle rages, the political landscape is heating up. The proposed Netflix-WBD union has faced backlash from US politicians who fear a streaming monopoly. The combined entity would control major assets like HBO and the Warner Bros studio, raising antitrust concerns that could complicate the finalization of the deal.
For now, the market favors Netflix. WBD shares rose 1.6% following the report of the cash offer, indicating that investors prefer the safety of Netflix’s cash over the high-stakes gamble offered by the Ellisons. The situation remains a high-profile test of whether cash or debt will win the day in Hollywood.