Paramount’s Revised Bid for Warner Bros Discovery Fails to Sway Key Shareholder

Paramount’s revised takeover bid for Warner Bros Discovery (WBD) has failed to fully win over at least one major shareholder, even after significant changes aimed at strengthening the proposal, according to a Reuters report.

Harris Oakmark, the fifth-largest shareholder in Warner Bros Discovery with close to a 4% stake as of end-September, has indicated that Paramount’s updated offer still does not meet its expectations. While the investor acknowledged that the revisions were necessary, it believes the changes do not sufficiently tip the balance in Paramount’s favour—particularly given the costs, risks, and complexity involved in pursuing an alternative deal path.

Earlier this week, Paramount restructured its $108.4 billion hostile bid to address concerns around financing. A key element of the revised proposal is the personal backing of co-founder Larry Ellison, who has provided guarantees exceeding $40 billion, aimed at reducing uncertainty around funding and strengthening confidence in the deal’s execution.

Paramount also increased the breakup fee payable if regulatory approvals are not secured, aligning it with the terms offered under a competing proposal from Netflix. Warner Bros Discovery shareholders have now been given until January 21, an extension from the earlier January 8 deadline, to decide whether to tender their shares.

Despite these enhancements, the Warner Bros Discovery board has reiterated its preference for Netflix’s competing bid. While Netflix’s all-cash offer implies a lower per-share valuation, the board has cited greater financing certainty, potential equity upside, and proceeds from a planned Discovery Global spin-off as key factors behind its recommendation.

Market observers note that the competing bids underscore the strategic value of Warner Bros Discovery’s assets, including HBO Max and globally recognised franchises such as Harry Potter, The Lord of the Rings, and Superman. While some investors appear inclined to follow the board’s guidance, others remain open to Paramount’s revised offer—particularly if Netflix opts not to improve its bid.