Warner Bros. Discovery (WBD.US) rose 4% in pre-market trading on Monday, reaching $28.88. The increase follows Paramount Skydance (PSKY.US) revising its acquisition offer for the company. While maintaining the cash offer of $30 per share, Paramount added a personal financial guarantee from Oracle (ORCL.US) Chairman Larry Ellison to counter competitive bids from Netflix (NFLX.US).
According to a statement released on Monday, Ellison has agreed to personally guarantee $40.4 billion in equity financing for Paramount, where his son David Ellison serves as CEO. This funding supports Paramount's proposed $108.4 billion acquisition of Warner Bros. Discovery. Ellison also committed not to revoke the Ellison Family Trust.
Paramount confirmed that the Ellison Family Trust holds approximately 1.16 billion shares of Oracle common stock, with all significant liabilities publicly disclosed. Additionally, Paramount increased the reverse termination fee from $5 billion to $5.8 billion.
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