Warner Bros Discovery investor signals openness to revised Paramount Skydance bid
Harris Associates says deal structure, not valuation alone, will decide support as takeover contest for Warner Bros Discovery intensifies.
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Harris Associates, the fifth-largest shareholder in Warner Bros Discovery, has indicated it would consider backing a revised takeover proposal from Paramount Skydance if the bidder improves its financial terms and resolves concerns around deal structure.
In comments shared on Thursday with Reuters, Alex Fitch, a portfolio manager at Harris Associates, said the investment firm remains open to an updated offer following Warner Bros Discovery’s rejection of Paramount Skydance’s $108.4 billion hostile bid earlier this week. The studio’s board dismissed the proposal as lacking credibility, citing concerns over financing and accusing Paramount Skydance of misleading shareholders.
Harris Associates, which holds roughly a 3.9 percent stake in Warner Bros Discovery, said that while the competing bids from Paramount Skydance and Netflix are broadly similar in value, Netflix’s proposal currently stands out for its stronger deal terms.
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“As things stand today, we think the Netflix and Paramount offers are comparable on value but that the Netflix offer is superior on deal terms,” Fitch said, adding that the issues identified with Paramount’s proposal appear solvable.
According to Fitch, an improved bid that offers clearer financing and more shareholder-friendly conditions could shift investor sentiment. “If Paramount decides to come forward with superior financial consideration and properly addresses the issues with deal terms, we would be very open to a revised Paramount offer,” he said, describing the next move as being in Paramount’s hands.
The comments underscore the high stakes in the battle for Warner Bros Discovery’s assets, which include its film and television studios, the HBO Max streaming platform and major intellectual properties such as the Harry Potter franchise.
With multiple bidders circling and key shareholders weighing both valuation and execution risk, the outcome of the takeover contest may hinge on whether Paramount Skydance can refine its offer to overcome scepticism around its original proposal.
