Billionaire Larry Ellison backs Paramount bid for Warner Bros with £30bn assure

Billionaire Larry Ellison has provided a £30billion guarantee to back Paramount Skydance’s £81billion bid for Warner Bros Discovery in the latest twist of the takeover tussle gripping Hollywood.

The co-founder of software firm Oracle, one of the world’s richest men, is pledging the money to address doubts over how the swoop would be financed.

Paramount, led by Ellison’s son David and whose films include the Top Gun series, is trying to gatecrash Netflix’s deal to buy the bulk of Warner for £62billion.

The company, controlled by the Ellison family and private equity firm Redbird Capital, has made a hostile offer – going over the heads of the Warner board to shareholders.

Warner wants them to reject Paramount’s bid, partly because it was initially backed only by the Ellison family’s trust, falling short of the personal guarantee now being offered. 

In a further twist, Ellison is seen as close to Donald Trump, and the President has signalled that he will be involved in the decision on whether to allow a deal.

Swoop: Paramount – which makes the Top Gun movies starring Tom Cruise (pictured), is trying to gatecrash a deal between Paramount and streaming giant Netflix

However, the billionaire’s wealth, much of it tied to his stake in Oracle, has taken a hit after its share price fell in the wake of disappointing results. 

Ellison’s guarantee does not change the value of Paramount’s offer for Warner but is reportedly aimed at forcing it to the negotiating table.

Paolo Pescatore, analyst at PP Foresight, said: ‘Paramount remains in a precarious position and is making a last-ditch effort to avoid being left out. The improved offer is a step in the right direction but unlikely to be enough.’

Winning the battle for Warner would grant control of its vast back catalogue of films from Casablanca to Harry

Potter as well as TV titles such as Game Of Thrones from HBO.

A triumph for Netflix – which is behind shows including Bridgerton and Squid Game – would cement its dominant position in streaming and may see it face scrutiny from competition regulators.

It has also raised fears over the future of film, though Netflix boss Ted Sarandos has said it would honour commitments to show Warner’s movies in cinemas first. A victory for Paramount would see two Hollywood giants combine to make a studio bigger than Disney.

It would also unite two operators. A group of Democratic senators said it would give one firm control over ‘almost everything Americans watch on TV’.