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Paramount Board Addresses Warner Bros. Discovery Merger Apprehensions


New Financing Guarantee from Larry Ellison Bolsters Skydance Offer


The special committee of Paramount Global's board of directors has formally responded to concerns raised by Warner Bros. Discovery regarding a potential merger with Skydance Media. The response, detailed in a new SEC filing, outlines a significant new financial guarantee from Oracle co

  • founder Larry Ellison to help alleviate worries about the deal's viability.


    • Strengthening the Skydance Merger Proposal


    Central to the board's reply is a new financing commitment. The filing states that Larry Ellison has provided a "binding commitment letter" guaranteeing that he would provide a $3 billion cash infusion to the merged company if the Skydance transaction is completed. This capital is intended to strengthen the balance sheet and directly address concerns about the financial stability of a combined Paramount

  • Skydance entity.


    • Addressing Regulatory and Financial Hurdles


    The board's communication aims to counter points made by Warner Bros. Discovery CEO David Zaslav, who had expressed skepticism about the Skydance bid. The primary concerns involved potential regulatory hurdles and the financial structure of the deal. By securing Ellison's substantial backing, the Paramount special committee is signaling that the offer is well

  • funded and capable of navigating the transaction's challenges.



    • Binding Financial Guarantee: Larry Ellison committed $3 billion in cash post
    • merger.

    • Balance Sheet Support: The funds are earmarked to ensure the new company's financial health.

    • Deal Certainty: The guarantee is designed to demonstrate the seriousness and feasibility of the Skydance bid.


This development marks a critical juncture in the ongoing negotiations for control of Paramount. The board's proactive move to secure concrete financial assurances underscores its effort to present the Skydance merger as the most robust path forward for the media conglomerate.