The co-founder of OracleLarry Ellison, agreed to provide a personal guarantee of $40.4 billion of equity financing for the offering of Paramount Skydance to acquire Warner Bros Discoveryas a presentation showed this Monday.
Paramount reported that the modified terms They do not change the offer of 30 dollars per share completely in cash.
The revised offer maintains its cash structure and incorporates greater details on the origin and strength of fundsseeking to demonstrate that the capital necessary to close the transaction is fully insured.
With this adjustment, Paramount tries to strengthen its position in the face of resistance from the Warner Bros. Discovery board, which had questioned the financial viability of the first proposal. For Paramount, the incorporation of Ellison’s guarantee aims to send a clear signal of commitment and solvency in one of the most ambitious operations in the Hollywood entertainment sector.
Despite the reinforcement, the final decision remains in the hands of Warner Bros Discovery, which evaluates whether the new proposal is sufficiently attractive compared to other strategic alternatives and the option of continuing independently in an increasingly competitive market.
The bidding war for Hollywood’s most prized assets doesn’t look like it’s going to end anytime soon, as the winner will get a huge advantage in the streaming war by acquiring an extensive library of content that has long been the subject of major operations.
(With information from Reuters)
