Harris Associates, the fifth-largest shareholder in Warner Bros. Discovery (WBD) with a 3.9% stake in the company, is encouraging Paramount Skydance (PSKY) to increase its offer for the HBO owner, according to several media reports from Thursday.
In an interview with Bloomberg, Alex Fitch, a director at the asset managing firm, said, “We fully support the Warner Bros. board’s focus on its fiduciary duties and its rejection of Paramount’s tender. The good news is that the terms Warner Bros. is concerned about are imminently addressable by Paramount, and we would welcome another bid from them. This is not over yet.”
In an email to Reuters, Fitch said, “We would be very open to a revised Paramount offer,” which is superior to Netflix’s. “The ball is in their court,” he added.
Netflix (NFLX) has offered a mix of cash and stock for the Warner Bros. studios and streaming businesses in a $72B deal, excluding debt. Paramount wants to buy out the whole company in a $108.4B transaction, including debt.