A top Warner Bros. Discovery (WBD) holder said he doesn’t believe that Paramount Skydance’s (PSKY) bid for the entertainment giant is superior to Netflix’s (NFLX) deal.
“I think you can quibble about is one offer a few pennies better than the other offer,” Bill Nygren, chief investment officer-U.S. of Harris Associates, the No. 5 largest Warner Bros. (WBD) holder told CNBC in an interview on Wednesday. “But to meet the hurdle of substantially signifnicant, I don’t think the Paramount bid does that.”
Nygren expects that Netflix (NFLX) and Paramount (PSKY) may still raise their bids.
“We don’t think we’ve seen the best bid yet from either company,” Nygren said. “Anyone who thinks the current bid is the best bid should sell the stock because the market is anticipating something higher.”
“I think either side at this point would be foolish to walk away,” Nygren added.