Despite Netflix announcing a deal with Warner Bros. Discovery to acquire the media and entertainment behemoth, Paramount has not given up on its own attempt to acquire the company by going directly to shareholders. Now, Paramount has announced that it has further sweetened its proposal in a bid to make a deal.
Paramount, which is run by David Ellison, has offered an “irrevocable personal guarantee” from his father, billionaire Oracle founder Larry Ellison, of $40.4 billion. Additionally, Paramount announced that it would increase and match Netflix’s fee of $5.8 billion to be paid to WBD if the deal gets struck down in the regulatory process. Paramount’s previous breakup fee was $5 billion.
What’s more, Paramount said its revised proposal includes “further improved flexibility to WBD on debt refinancing transactions, representations, and interim operating covenants.” The updated offer also includes the publishing of records that show the Ellison family trust owns 1.16 billion shares of Oracle stock, which is an attempt to show WBD shareholders that the Ellisons can indeed finance their $40.4 billion of the proposed $108 billion all-cash offer.
