Warner Battle Intensifies: Larry Ellison Offers $40 Billion Personal Guarantee as Netflix Bolsters $59 Billion Bid

The takeover battle for Warner Bros. Discovery has entered an intense new phase, marked by unprecedented financial escalation among competing parties. Billionaire Larry Ellison announced an irrevocable $40.4 billion personal guarantee to support Paramount Skydance's acquisition bid, directly countering Netflix's move to refinance a significant portion of a $59 billion debt package to strengthen its own offer.

Ellison's guarantee aims to dispel doubts over the $108.4 billion Paramount bid, which features a fixed share price of $30 and substantial debt commitments. Paramount has also raised its regulatory termination fee to $5.8 billion and granted Warner greater operational and debt management flexibility during the transition.

On the other hand, Netflix improved its financial position by refinancing part of a $59 billion bridge loan into lower-cost, longer-term credit facilities, including a $5 billion revolving facility and two delayed-draw loans of $10 billion each, while retaining $34 billion for lender redistribution. This move is designed to reinforce the financing structure behind Netflix's offer, which values Warner’s studio and streaming assets at around $82.7 billion.

Warner Bros. Discovery’s board has expressed support for Netflix’s bid, urging shareholders to reject Paramount’s offer due to its higher risk and debt load. However, Ellison’s personal guarantee has shifted the debate, increasing pressure on both the board and investors.

Despite institutional backing, Netflix faces regulatory and political hurdles, with Senator Elizabeth Warren labeling the possible deal a “monopoly nightmare.” Netflix is working to reassure employees that the acquisition will not lead to studio closures or production cuts.

This contest is among the largest in entertainment history, where massive financing bets intersect with the future of global streaming and content libraries, including key assets like HBO and the Warner Bros. film and TV archive. With both sides employing complex financing structures and some of the decade’s largest debt deals, the outcome remains uncertain pending regulatory and shareholder decisions.