Harris Oakmark says Paramount Skydance’s revised bid for Warner Bros still falls short

Paramount Skydance’s revised bid to acquire Warner Bros Discovery has failed to convince one of the studio’s largest shareholders, with Harris Oakmark indicating that the offer still does not provide enough incentive to switch away from a rival proposal, as per a Reuters report.

Harris Oakmark, Warner Bros Discovery’s fifth-largest shareholder with a stake of about 4%, said the changes introduced in Paramount’s amended proposal were “necessary, but not sufficient.” The investor signalled that it remains open to backing a deal but expects stronger terms if Paramount hopes to prevail.

The revised $108.4 billion hostile bid was amended earlier this week to strengthen financing. Oracle co-founder Larry Ellison has now personally guaranteed more than $40 billion of the offer, addressing investor concerns around funding certainty. Paramount also increased the regulatory break fee to $5.8 billion to align with a competing offer from Netflix, though it left the headline price unchanged.

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Despite these changes, Harris Oakmark said that switching paths carries costs and that Paramount would need to provide additional value to outweigh those risks. Warner Bros shareholders now have until January 21 to decide whether to tender their shares, following an extension of the deadline.

Warner Bros’ board has already recommended that shareholders reject Paramount’s earlier bid, favouring Netflix’s lower but more secure cash-and-stock offer. While Netflix’s bid values the company at $23.25 per share, the board has argued that its financing structure and planned Discovery Global spinoff offer greater long-term certainty.

Market observers say the competing bids underline the value of Warner Bros’ film and television assets, including major franchises such as Harry Potter, Lord of the Rings and Superman. Some investors believe Paramount’s offer could still gain traction if further sweetened, especially given expectations that it may face fewer regulatory hurdles than Netflix.

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Major institutional investors including Vanguard, State Street and BlackRock hold significant stakes across Warner Bros, Paramount and Netflix, placing them at the centre of a high-stakes decision that could reshape the global media landscape.