Larry Ellison's Bold Move: A New Twist in the Paramount vs. Netflix Battle

Larry Ellison guarantees $40.4 billion for Paramount Skydance's bid against Netflix's offer for Warner Bros Discovery. Analysts are divided on the bid's impact, with some seeing it as compelling, while WBD executives favor Netflix. Regulatory scrutiny from involving sovereign wealth funds poses additional challenges.

In a dramatic turn of events in the entertainment industry, Oracle co-founder Larry Ellison has made a personal guarantee of $40.4 billion in support of Paramount Skydance's attempts to acquire Warner Bros Discovery. This bold move aims to sway the board away from Netflix's competing offer, despite existing reservations about Paramount's financing strategy.

Experts offer varied insights into the unfolding scenario. S&P Global's Seth Shafer suggests that the revised bid may not significantly alter the current dynamics, as shareholder votes are still months away. Meanwhile, Wedbush Securities' Michael Pachter argues that the irrevocable nature of this bid addresses major concerns, giving Paramount a near 100% chance.

However, complications arise with the involvement of Middle Eastern sovereign wealth funds, as highlighted by DealReporter's Reuben Miller. This brings an additional layer of scrutiny concerning foreign influence in U.S. media. The battle between Paramount and Netflix promises further twists, leaving the industry on edge.

(With inputs from agencies.)