Mr. Ellison’s personal guarantee is meant to address concerns that the Warner Bros. Discovery’s board had expressed about Paramount’s original offer.
Paramount said on Monday that Larry Ellison, the father of Paramount’s chief executive, David Ellison, is personally guaranteeing the roughly $40.4 billion in equity that the company is offering as part of its bid for Warner Bros. Discovery.
The announcement of Mr. Ellison’s personal guarantee is meant to address concerns that the Warner Bros. Discovery’s board had expressed about Paramount’s original offer.
Warner Bros. Discovery recently announced an $83 billion deal to sell a large part of its business to Netflix. Warner Bros. said Netflix offered a better deal for its shareholders than Paramount’s $108 billion bid to acquire the full company. After the Warner Bros. Discovery board rejected Paramount’s bid, it brought the same offer to the company’s shareholders.
