Oracle co-founder Larry Ellison will provide a personal guarantee of $40.4 billion in equity financing to back Paramount Skydance's all-cash $108.4 billion bid for Warner Bros Discovery, a regulatory filing showed on Monday.
The guarantee aims to address Warner Bros board's doubts over Paramount's financing and the lack of full backing from the Ellison family, which had led to the company preferring a cash-and-stock deal with Netflix.
Paramount launched a hostile takeover bid backed by three Gulf sovereign wealth funds last week and asked Warner Bros' shareholders to reject a rival Netflix bid favoured by the board.
Paramount said the amended terms do not change the $30-per-share offer. Warner Bros shares rose nearly 4 per cent in premarket trading, while Paramount Skydance added about 3 per cent.
“In an effort to address Warner Bros’ amorphous need for ‘flexibility’ in interim operations, Paramount’s revised proposed merger agreement offers further improved flexibility to Warner Bros on debt refinancing transactions, representations and interim operating
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