Harris Associates Open to Revised Paramount Skydance Bid for Warner Bros Discovery

Harris Associates, the fifth-largest shareholder in Warner Bros Discovery, has signaled openness to a revised takeover proposal from Paramount Skydance, provided the company submits a stronger offer and resolves concerns surrounding deal terms. The development adds a new layer to the high-stakes battle for control of one of Hollywood’s most valuable media empires, which includes Warner Bros’ film and television studios, the HBO Max streaming platform, and globally recognized franchises such as Harry Potter.

Earlier this week, Warner Bros Discovery’s board rejected Paramount Skydance’s $108.4 billion hostile takeover bid, describing the proposal as “illusory.” The board accused the bidder of misleading shareholders regarding the certainty and structure of its financing, raising doubts about whether the deal could realistically be completed under the proposed terms. This rejection came amid intense competition from Netflix, which has also tabled an offer to acquire Warner Bros Discovery.

According to Reuters, Alex Fitch, a portfolio manager at Harris Associates, said in an email that the firm currently views the Netflix and Paramount Skydance offers as broadly comparable in terms of valuation. However, Fitch emphasized that Netflix’s bid is more attractive due to its superior deal structure and clearer execution certainty. Harris Associates owns approximately 3.9% of Warner Bros Discovery, giving its opinion notable weight among investors.

Despite favoring Netflix’s proposal at present, Fitch made it clear that the situation could change. He noted that the weaknesses in Paramount Skydance’s offer are not insurmountable. If Paramount Skydance improves its financial consideration and adequately addresses the issues surrounding deal terms, Harris Associates would be “very open” to reassessing its position. Fitch added that responsibility now lies with Paramount Skydance to respond with a more compelling and credible bid.

The takeover race highlights the strategic importance of Warner Bros Discovery in the global media and streaming landscape. As traditional studios and streaming giants compete for premium content libraries and intellectual property, investor sentiment and deal certainty are becoming just as critical as headline valuations. With shareholders like Harris Associates leaving the door open, the outcome of this acquisition battle remains far from settled.