Paramount Skydance's (PSKY) latest proposal to acquire Warner Bros. Discovery (WBD) is still not sufficient for shareholder Harris Oakmark, Reuters reported Tuesday, citing the investment firm.
Harris Oakmark, which owned 96 million shares or about 4% of the company as of the end of September, will hold out for more from Paramount, the report said.
"The changes in Paramount's new offer were necessary, but not sufficient," Harris Oakmark portfolio manager and director of US research Alex Fitch told Reuters in an email. "We see the two deals as a toss-up, and there is a cost to changing paths," Fitch added. "If Paramount is serious about winning, they're going to need to provide a greater incentive."
On Monday, Paramount amended its $108.4 billion offer for Warner Bros., with Oracle (ORCL) co-founder Larry Ellison now personally guaranteeing $40.4 billion of the proposal, the report said. Paramount also raised the fee that the company will pay if the deal fails to receive regulatory approval to $5.8 billion from $5 billion, matching a competing offer from Netflix (NFLX), the report said.
Warner Bros. investors now have until Jan. 21 to accept or reject the offer, the Reuters report said.
Paramount Skydance, Warner Bros. Discovery and Harris Oakmark did not immediately respond to requests for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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