Oracle’s Larry Ellison agrees to secure financing for Paramount’s $40.4 billion acquisition of Warner Bros.

Shares in Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD) rose sharply on Monday after Larry Ellison, founder and chief executive of Oracle (ORCL), agreed to a personal backstop $40.4 billion in equity financing for Paramount’s proposed acquisition of Warner Bros.

Paramount shares rose over 4%, while Warner Bros. shares rose over 3.5%.

In a securities filing Monday morning, Paramount Skydance — led by Larry Ellison’s son David Ellison — said the elder Ellison had agreed to stop financing the deal to allay the fears of Warner Bros. Discovery’s board. Last week, the board rejected Paramount’s offer in favor of Netflix (NFLX), arguing in part that Paramount was too undercapitalized to get a takeover over the finish line.

Read more: 5 questions for Netflix subscribers about the Warner Bros. deal

Paramount’s announcement on Monday said the Ellison Family Trust owns…