On Monday, December 22, Paramount presented an updated offer to acquire Warner Bros. Discovery. The main change was that Larry Ellison – one of the richest people in the world – will personally guarantee $40.4 billion of his own capital to finance the deal, the total value of which is $78 billion. This was reported by CNN, writes UNN.
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Previously, the WBD board of directors rejected Paramount's requests, calling their financial plans "illusory" and preferring an offer from Netflix. To prove the seriousness of its intentions, Paramount not only provided Ellison's personal guarantees but also disclosed data on a family trust that owns 1.16 billion Oracle shares.
Deal worth $108.4 billion at risk: Warner Bros. may not support Paramount's offer17.12.25, 12:14
We have airtight financing
Paramount is offering shareholders $30 per share (including CNN and cable channels), which is higher than Netflix's offer of $27.75. In addition to Ellison's capital, the deal is largely financed by the royal families of Saudi Arabia, Qatar, and Abu Dhabi.
The company also increased the "breakup fee" for terminating the deal to $5.8 billion, matching Netflix's terms in this regard. Now the decision rests with the shareholders, who may support Paramount's offer despite the skepticism of the board of directors.
Warner Bros Discovery rejected Paramount's $108.4 billion offer17.12.25, 16:47