WBD’s Shareholder Reportedly Says Paramount’s Latest Offer Falls Short: If They’re 'Serious About Winning…’

• Harris Oakmark’s Director of U.S. Research, Alex Fitch, stated that the changes announced by Paramount on Monday were necessary, but still not enough.
• Paramount guaranteed that Oracle co-founder Larry Ellison would be involved in the deal to acquire Warner Bros. Discovery.
• The company added that Ellison has agreed to an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damage claims against the company.

Warner Bros. Discovery Inc.’s (WBD) fifth-largest shareholder, Harris Oakmark, reportedly said on Tuesday that the latest offer from Paramount Skydance Corp. (PSKY) is not adequate.

According to a Reuters report, the investor said Paramount’s latest bid and Netflix Inc.’s (NFLX) original offer are a toss-up, and that there is a cost involved in changing paths.

“If Paramount is serious about winning, they’re going to need to provide a greater incentive,” said Alex Fitch, Harris Oakmark portfolio manager and Director of U.S. Research, according to the report.

Paramount Skydance shares edged up by 0.1% in Tuesday’s pre-market trade, while Warner Bros. Discovery shares were up around 0.2%. Retail sentiment on Stocktwits around Paramount trended in the ‘neutral’ territory, while users felt ‘bearish’ about Warner Bros. Discovery.

Necessary Changes, But Not Sufficient

Fitch stated that the changes announced by Paramount on Monday were necessary, but still not enough.

Paramount guaranteed that Oracle Corp. (ORCL) co-founder Larry Ellison would be involved in the deal to acquire Warner Bros. Discovery. In its announcement, Paramount stated that Ellison has agreed to an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damage claims against the company.

The David Ellison-led company also extended the timeline for Warner Bros. Discovery shareholders to either accept or reject the latest offer to January 21, from January 8.

“Our $30 per share, fully financed all-cash offer was on December 4th, and continues to be, the superior option to maximize value for WBD shareholders,” Paramount CEO David Ellison said.

WBD Board’s Recommendation

Last week, Warner Bros. Discovery’s board recommended that shareholders reject Paramount’s previous bid and approve Netflix’s offer instead.

The board said Paramount’s offer posed “numerous, significant risks,” and that the company had “consistently misled” them by stating that its bid was fully backstopped by the Ellison family.

“We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination,” WBD board said.

PSKY stock is up 30% year-to-date, while WBD stock is up 172%.

Also See: Wharton's Jeremy Siegel Says 2026 Has The Ingredients To Be A Good Year For Risk Assets – If Washington Avoids These Two Challenges

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