Paramount Skydance has updated its takeover proposal for Warner Bros. Discovery (WBD), but the changes have not convinced all stakeholders. Harris Oakmark, portfolio manager and Director of U.S. Research Alex Fitch, commented that while the adjustments were necessary, they do not go far enough to secure support from major shareholders.

Oakmark, who holds approximately 96 million WBD shares—about 4% of the company as of the end of September—suggested that Paramount, led by David Ellison and backed by Larry Ellison, will need to improve its offer to compete with rival bids, including one from Netflix. “We see the two deals as a toss-up, and there is a cost to changing paths,” Oakmark said. “If Paramount is serious about winning, they’re going to need to provide a greater incentive.”

On Monday, Warner Bros. Discovery advised its shareholders not to take any action regarding the amended Paramount Skydance tender offer. The revised proposal now features:

• A $40.4 billion personal equity financing guarantee from Larry Ellison, Oracle co-founder and father of Paramount CEO David Ellison
• An enhanced $5.8 billion breakup fee
• Increased financial flexibility during the interim period

Despite these enhancements, the core financial terms remain unchanged from Paramount’s previous offer made on December 8, which was rejected by WBD. The proposal still seeks to acquire all outstanding WBD shares for $30 each in cash.

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