In a defining moment for the global entertainment industry, Oracle cofounder and billionaire Larry Ellison has stepped directly into the center of Hollywood’s most consequential takeover battle. With a single move, Ellison agreed to personally guarantee more than $40 billion to support his son David Ellison’s hostile takeover bid for Warner Bros. Discovery (WBD)—a decision that could permanently alter the balance of power between legacy media companies and tech-driven streaming giants.

This extraordinary intervention doesn’t just rescue a deal under fire. It raises the stakes in what analysts are already calling the largest and most symbolic media consolidation fight of the decade.

David Ellison, CEO of Paramount Skydance, has been aggressively pursuing Warner Bros. Discovery with a $108 billion all-cash offer, valuing the media giant at approximately $30 per share. The bid targets one of the most valuable collections of intellectual property in entertainment history—spanning Warner Bros. Studios, HBO, DC Entertainment, and a vast global content library.

Despite the premium valuation, the WBD board rejected the proposal earlier this month, choosing instead a rival agreement with Netflix, estimated at $83 billion, focused on acquiring WBD’s studio and streaming assets.

The board’s justification wasn’t price—it was trust.

Warner Bros. Discovery directors publicly questioned the reliability of Paramount Skydance’s financing, labeling it “illusory.” Their concern centered on the deal’s reliance on the Ellison family trust, which they argued could be modified or withdrawn before the transaction closed.

That criticism proved decisive—until now.

On Monday, Paramount Skydance announced that Larry Ellison himself had issued an irrevocable personal guarantee of $40.4 billion, covering both equity financing and potential damages claims related to the offer. Ellison also committed not to revoke or materially alter the family trust during the transaction period.

For context, the guarantee represents roughly one-sixth of Ellison’s estimated $247 billion net worth—an unprecedented personal commitment in modern media M&A.

From a governance standpoint, Larry Ellison’s move effectively removes the WBD board’s strongest argument against engaging with Paramount Skydance. Financing credibility—previously the deal’s Achilles’ heel—is no longer in question.

To further level the playing field, Paramount Skydance also increased its breakup fee to $5.8 billion, matching the termination fee embedded in Netflix’s competing proposal. This reduces execution-risk concerns and places both bids on nearly identical contractual footing.

For shareholders, the implications are clear: a higher all-cash offer, now backed by one of the world’s wealthiest individuals, must be seriously reconsidered.

At the heart of this takeover battle lies a strategic divide.

Netflix’s proposal focuses on studio and streaming assets, leaving behind WBD’s Global Networks division, including CNN and other cable-based brands. That unit had already been slated for a potential spin-off, raising concerns about fragmentation and long-term value erosion.

By contrast, David Ellison argues that Paramount Skydance’s bid preserves Warner Bros. Discovery as a single, integrated media powerhouse—one capable of competing globally across film, television, streaming, and emerging platforms.

“Our fully financed, all-cash offer continues to be the superior path to maximize shareholder value,” Ellison said in a statement. “It also protects and strengthens one of Hollywood’s most iconic institutions for the future.”

Investors responded quickly. Warner Bros. Discovery shares climbed nearly 3%, while Paramount surged more than 7% in early trading following the announcement. The market clearly interpreted Ellison’s guarantee as a turning point.

Meanwhile, Oracle shares dipped modestly, reflecting short-term caution but underscoring how deeply personal—and strategic—Ellison’s move truly is.

The decision now returns to the Warner Bros. Discovery board, which must weigh fiduciary duty against strategic alignment. Rejecting a higher, fully financed offer backed by a $40 billion personal guarantee may prove increasingly difficult—especially under shareholder and regulatory scrutiny.

Beyond this single deal, the moment signals a broader trend: ultra-wealthy tech founders leveraging personal capital to reshape legacy industries. Hollywood, long ruled by studios and networks, is now firmly in the crosshairs of Silicon Valley power.

One thing is certain—when Larry Ellison places $40 billion of his own fortune behind a vision, the future of media doesn’t just shift.
It accelerates.