Hollywood
Ellison puts his name on the line as Hollywood’s deal drama hits overdrive
MUMBAI: In Hollywood, even the fine print can steal the show. Larry Ellison has now walked into the spotlight, personally backing Paramount Skydance’s blockbuster bid with a $40.4 billion guarantee that could yet rewrite Warner Bros Discovery’s future.
The Oracle co-founder’s intervention, disclosed in a regulatory filing on Monday, is aimed squarely at easing Warner Bros’ concerns over Paramount’s financing strength and the absence of a full Ellison family backstop. Those doubts had nudged the Warner Bros board towards a rival cash-and-stock offer from Netflix, setting the stage for a high-stakes tug of war over one of Hollywood’s most valuable content libraries.
Markets reacted swiftly. Warner Bros shares closed up 3.5 per cent, while Paramount gained more than 4 per cent, as investors digested Ellison’s decision to quite literally sign on the dotted line.
Despite the new guarantee, Warner Bros struck a cautious note, saying it would review and consider Paramount’s revised terms but would not alter its current recommendation in favour of the Netflix deal. Netflix, meanwhile, declined to comment.
Paramount insisted the economics remain unchanged, maintaining its $30-per-share all-cash offer even as the battle for Hollywood’s crown jewels intensifies. Control of Warner Bros’ vast film and television catalogue is widely seen as a decisive weapon in the streaming wars, where scale increasingly dictates survival.
Under the revised terms, Ellison has also agreed not to revoke or transfer assets held in the family trust while the transaction is under way. Paramount has raised its regulatory reverse termination fee to $5.8 billion from $5 billion to match the competing offer and extended its tender offer deadline to January 21, 2026.
The backdrop is already fraught. Warner Bros has urged shareholders to reject Paramount’s $108.4 billion offer for the entire company, citing financing concerns. Yet influential investors, including fifth-largest shareholder Harris Associates, have signalled openness to a superior bid if Paramount can improve its terms. Walking away from Netflix would come at a cost too, triggering a $2.8 billion breakup fee.
Beyond shareholder arithmetic lies an even tougher hurdle: regulation. Both potential deals face intense antitrust scrutiny in the US and Europe, with lawmakers from across the political spectrum warning against further media consolidation. President Donald Trump has also indicated he intends to weigh in.
A Paramount–Warner Bros merger would create a studio larger than Disney and unite two major television operators, prompting Democratic senators to warn of one company controlling “almost everything Americans watch on TV”. A Netflix–Warner Bros tie-up, by contrast, would cement Netflix’s dominance, creating a streaming behemoth with a combined 428 million subscribers.
Netflix argues its deal would benefit consumers through bundled offerings and fewer job losses. Co-CEO Ted Sarandos has said he is confident of regulatory approval, even as the industry grapples with uneven box-office returns.
For now, with Ellison’s guarantee on the table, Hollywood’s biggest script remains unwritten and the final act promises plenty more twists before the curtain falls.
Hollywood
Paramount Skydance secures financing for Warner Bros Discovery deal
Debt syndication and new loans push $111 billion merger closer to close
WASHINGTON: Paramount Skydance has taken a major step towards its planned acquisition of Warner Bros Discovery, securing fresh financing and completing the syndication of its bridge loan facility.
In a filing with the Securities and Exchange Commission, the company confirmed that the bridge facility has now been distributed among a group of 18 banks, reducing total commitments to $49 billion from an earlier $54 billion. The move spreads risk across lenders and signals growing confidence in one of the year’s largest media deals.
Alongside this, the company has finalised permanent financing arrangements, including $5 billion in senior term loans and a $5 billion revolving credit facility. A previously planned $3.5 billion credit line has been dropped as part of the restructuring.
The loans are secured against key assets, including Paramount Global, Skydance Media and Warner Bros post-merger, underlining the scale and complexity of the transaction.
The financing push follows a competitive bidding process earlier this year, which saw interest from players such as Netflix before Paramount Skydance emerged as the frontrunner. The deal, valued at $111 billion, is expected to close in the third quarter, subject to regulatory approvals.
Adding to the momentum, the company has also secured significant equity backing, including investments from Middle Eastern funds, with support from billionaire Larry Ellison, who has guaranteed the equity portion of the transaction.
Commenting on the development, Paramount Skydance chief strategy officer Andy Gordon said, “Our successful debt syndication and new debt facilities represent another important milestone towards the completion of our acquisition of Warner Bros Discovery.”
Once completed, the combined entity is expected to carry net debt of just under $80 billion, reflecting the sheer scale of the merger.
As Hollywood continues to consolidate in the streaming era, this deal could reshape the competitive landscape, with Paramount Skydance betting big on scale, content and financial muscle to take on global rivals.
