A major institutional investor in Warner Bros. Discovery has said that Paramount Skydance’s revised takeover offer remains insufficient to win support from the company’s shareholders, even after significant financial enhancements. The comments, made by Harris Oakmark, the fifth-largest shareholder in Warner Bros., highlight persistent scepticism about Paramount’s $30-per-share all-cash bid, which values the storied media group at approximately $108.4 billion.
According to media reports, Paramount amended its hostile bid structure in recent days, securing a personal $40.4 billion equity guarantee from Oracle co-founder Larry Ellison and increasing the regulatory failure fee in an effort to address earlier concerns about financing certainty. Despite these changes, Harris Oakmark portfolio manager Alex Fitch described the enhancements as “necessary, but not sufficient,” suggesting that investors may still see the competing merger agreement with Netflix as offering greater certainty or value.
The Warner Bros. board has previously recommended that shareholders reject Paramount’s tender offer, citing concerns about financing credibility and the relative attractiveness of the Netflix deal, which includes a mix of cash and stock. Paramount has not increased the core $30-per-share bid but has sought to shore up confidence by expanding its backstop and aligning key contractual terms with the competing offer.
Market observers say the latest shareholder feedback reflects the broader tension in the deal process, as Warner Bros. Discovery stakeholders weigh the promises and risks of two very different bids. The deadline for shareholder action has been extended into January, and both suitors continue to court key investors in hopes of securing the necessary support.
