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.
