Oracle founder Larry Ellison has agreed to personally backstop US$40.4 billion in financing tied to Paramount Global’s proposed acquisition of Warner Bros., in a move that underscores the scale and complexity of one of the largest media consolidation efforts in recent years.
According to reports cited by Yahoo Finance, the financing structure includes a personal guarantee from Ellison, a rare step that reflects lender concerns around execution risk, debt sustainability, and volatility in the global media and entertainment sector. The guarantee was reportedly demanded as part of negotiations to secure favorable financing terms for the transaction.
The proposed deal would combine Paramount’s portfolio, including Paramount Pictures, CBS, and Paramount+, with Warner Bros.’ extensive film, television, and streaming assets, such as Warner Bros. Pictures, HBO, and Max. If completed, the merger would create one of the most powerful content conglomerates globally, with a deep library spanning film, television, sports, and streaming.
Ellison’s involvement is seen as a major confidence signal to creditors and investors. As one of the world’s wealthiest individuals and a longtime technology and media investor, his backing significantly reduces counterparty risk for lenders, particularly at a time when traditional media companies face declining linear TV revenues, high content costs, and intense competition from global streaming platforms.
Market analysts note that the demand for a personal guarantee highlights broader concerns about leverage in the media industry. Large-scale mergers increasingly require not just corporate balance sheets but also the credibility and financial strength of influential backers to close funding gaps. Ellison’s guarantee effectively serves as a stabilizing anchor for the deal’s debt package.
Neither Paramount Global nor Warner Bros. Discovery has publicly commented in detail on the structure of the financing or the timing of a potential closing. Regulatory scrutiny is also expected to be intense, given the size of the transaction and its implications for competition in the U.S. and global media markets.
If approved, the acquisition would mark a defining moment in the ongoing consolidation of legacy media, as companies race to achieve scale, control content costs, and compete more effectively with technology-driven streaming giants.
Paramount’s Ellison brothers seek Middle East backing for WBD bid
