In the latest twist of blockbuster M&A theater, Oracle co-founder Larry Ellison reportedly personally guaranteed $40.4 billion to strengthen Paramount Skydance’s push to acquire Warner Bros. Discovery.
That number isn’t just eye-watering—it’s strategic.
A personal guarantee is basically the corporate version of stepping into the ring yourself. Instead of relying on complicated financing stacks and “committed funding” paperwork that can get questioned, a billionaire backstop is meant to send a blunt message: the money will be there. In deals this large, confidence is currency. Boards, shareholders, and lenders all ask the same thing: Will this close? A guarantee aims to reduce the “maybe” factor.
Why do this now?
Because megadeals don’t fail only on price. They fail on:
- financing credibility (who really has the cash when it’s time to pay?)
- regulatory risk (will governments let it happen?)
- deal certainty (is this offer solid—or just loud?)
By putting his name—and effectively his balance sheet—behind it, Ellison is trying to remove one of the easiest attacks rivals can make: “Nice offer. Can you actually pay?”
What it signals
This move hints that the contest for major media assets is shifting from “who wants it” to “who can prove it.” It also raises the temperature on everyone else involved. A guarantee that large pressures competitors to either match certainty or change tactics—sweeten terms, restructure the bid, or walk away.
The real story
This isn’t just about owning studios and networks. It’s about control of a shrinking set of premium entertainment engines—franchises, IP libraries, streaming leverage, and global distribution power.
And when a tech titan personally backs $40.4B to push a deal over the line, it’s a reminder: this isn’t a normal acquisition. It’s a power play.
