"The war for the future of Warner Brothers continues, as Paramount Skydance announced Monday an amended all-cash offer for the legacy movie studio. The offer includes an "irrevocable personal guarantee" from a major backer, Oracle billionaire Larry Ellison, to provide tens of billions in equity financing for the deal. It's the latest move by Ellison's son, David Ellison-the CEO of Paramount Skydance-to pry the potential acquisition loose from his competition, the streaming giant Netflix."
""Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount," a Paramount press release published Monday states. The proposed equity financing had previously been included in Paramount's offer, but the elder Ellison's "personal guarantee" is new, the press release states. The revamped offer comes a mere week after the WBD board rejected Paramount's initial bid, favoring, instead, a previous deal with Netflix."
"That deal was announced on December 5th, outlining how the streamer would purchase the movie studio via a cash and stock option valued at $27.75 per WBD share, and a total enterprise value of $82.7 billion. Three days after the Netflix deal was announced, Paramount launched a hostile bid valued at $108.4 billion, offering $30 per share. The WBD board rejected this offer, calling it "illusory" and claiming that Paramount had misled shareholders about the proposed deal's financing."
Paramount Skydance submitted an amended all-cash takeover bid for Warner Bros. that includes Oracle founder Larry Ellison's irrevocable personal guarantee for $40.4 billion of equity financing and potential damages. Warner Bros. Discovery had announced a December 5 agreement with Netflix valued at $27.75 per share and an $82.7 billion enterprise value. Paramount followed with a hostile $108.4 billion bid offering $30 per share, which the WBD board rejected as illusory and said misled shareholders about financing. Paramount states the amended offer is designed to address WBD's stated financing concerns and compete with the Netflix deal.
Read at TechCrunch
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