Investor says Paramount’s Warner Bros bid still falls short
A major Warner Bros Discovery shareholder says Paramount’s revised takeover bid still does not go far enough, even after the media giant strengthened its financing to counter a rival offer from Netflix.
Harris Oakmark, Warner Bros’ fifth-largest shareholder with about 4% of outstanding shares, told Reuters that Paramount Skydance’s updated proposal remains insufficient. The investor signaled it is prepared to hold out for better terms from the Ellison family–controlled company, News.Az reports, citing Reuters.
“The changes in Paramount’s new offer were necessary, but not sufficient,” said Alex Fitch, portfolio manager at Harris Oakmark. “If Paramount is serious about winning, they will need to provide a greater incentive.”
Earlier this week, Paramount amended its $108.4 billion hostile bid for Warner Bros, aiming to address investor concerns over financing. Oracle co-founder Larry Ellison, whose son David controls Paramount, personally guaranteed $40.4 billion of the deal, a move intended to reduce uncertainty around funding.
Paramount also raised the breakup fee to $5.8 billion if regulators block the deal, matching a competing offer from Netflix. However, it did not increase its headline bid of $30 per share.
Despite the revisions, Warner Bros’ board has unanimously recommended that shareholders reject Paramount’s offer in favor of Netflix’s proposal. While Netflix’s cash bid of $23.25 per share is lower, the board said it offers more secure financing and includes Netflix stock, along with potential value from spinning off Discovery Global.
Investors have until January 21 to decide whether to accept Paramount’s tender offer, an extension from the original January 8 deadline.
Market participants say the bidding war highlights the strategic value of Warner Bros’ assets, including HBO Max and blockbuster franchises such as Harry Potter, The Lord of the Rings, and Superman.
“It’s rare to get a chance to add top-shelf media assets like these,” said Yussef Gheriani, chief investment officer at IHT Wealth Management, adding that he is likely to follow the board’s recommendation.
Other investors remain divided. Some see Paramount’s revised offer as more likely to clear regulators, especially after Ellison’s personal guarantee reduced financing risk. Meanwhile, large institutional holders such as Vanguard, State Street, and BlackRock — which collectively control more than 22% of Warner Bros — have not publicly commented.
With rival bids still in play, pressure is mounting on Paramount to sweeten its offer if it hopes to win over skeptical shareholders.
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