Larry Ellison shores up Paramount's Warner bid

Billionaire Larry Ellison has stepped up, agreeing to personally guarantee part of Paramount's bid for rival Warner Bros.Discovery.

- BY MEG JAMES

LARRY Ellison, whose son, David, is Paramount's CEO, is personally guaranteeing part of Paramount's offer.

(ROBERT GAUTHIER Los Angeles Times)

Ellison's personal guarantee of $40.4 billion in equity, disclosed Monday, ups the ante in the acrimonious auction for Warner Bros. movie and TV studios, HBO, CNN and Food Network.

Ellison, whose son, David, is Paramount's chief executive, agreed to not revoke the Ellison family trust or adversely transfer its assets while the Warner Bros. transaction is pending. Paramount's $30-a-share offer remains unchanged.

Warner's board this month awarded the prize to Netflix. The board rejected Paramount's $108.4-billion deal, largely over concerns about the perceived shakiness of Paramount's financing.

Paramount then launched a hostile takeover, appealing directly to Warner shareholders, offering them $30 a share. Paramount on Monday extended the deadline to Jan. 21 for Warner investors to tender their shares.

“We amended this Offer to address Warner Bros. stated concerns regarding the Prior Proposal and the December 8 Offer,” Paramount said in a Monday Securities & Exchange Commission filing.

“Mr. Larry Ellison is providing a personal guarantee of the Ellison Trust’s $40.4 billion funding obligation.”

Warner Bros. Discovery did not provide an immediate comment.

Warner stock jumped 3.5% on the news to $28.75. Paramount shares climbed 4.2% to $13.61 and Netflix fell 1.2% to $93.23.

The Ellison family acquired the controlling stake in Paramount in August. The family launched their pursuit of Warner Bros. in September but Warner's board unanimously rejected six Paramount proposals over the last three months.