Paramount Skydance’s revised offer to acquire Warner Bros Discovery has failed to satisfy at least one major shareholder, raising fresh doubts over the success of the $108.4 billion hostile bid. Harris Oakmark, Warner Bros’ fifth-largest shareholder, said the updated proposal still does not offer enough incentive to abandon a rival deal.
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Harris Oakmark, which owns about 96 million shares or roughly 4% of Warner Bros, said the changes introduced by Paramount were “necessary, but not sufficient”. Alex Fitch, the firm’s portfolio manager and director of U.S. research, told Reuters that switching to Paramount’s offer would carry costs and risks, adding that a stronger incentive would be required if Paramount wants to prevail.
Paramount amended its offer on Monday to strengthen financing after investor concerns. Oracle co-founder Larry Ellison, whose son David controls Paramount, has now personally guaranteed $40.4 billion of the bid, easing worries over funding previously held in a revocable trust. Paramount also raised its regulatory break fee to $5.8 billion, matching a competing proposal from Netflix, but left its $30-per-share price unchanged.
Warner Bros shareholders now have until January 21 to decide whether to accept the Paramount bid, following an extension from the earlier January 8 deadline. The Warner Bros board has unanimously recommended rejecting Paramount’s earlier offer in favour of Netflix’s proposal, citing stronger and more secure financing.
Netflix’s bid, while lower at $23.25 per share in cash, includes an additional $4.50 in Netflix shares and potential value from the spin-off of Discovery Global. The board argued this structure offers greater certainty despite the lower headline price.
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The competing bids highlight the strategic value of Warner Bros’ media assets, including HBO Max and major film franchises. Some investors believe Paramount’s revised offer could still gain traction if Netflix does not counter, particularly given Paramount’s perceived advantage in securing regulatory approval.