The fight over Warner Bros. Discovery is far from over with Paramount of the Ellisons revising their initial offer in hopes of gobbling up the company. An Amended Tender Offer was submitted to Warner Bros. Discovery which the board of directors said it would “carefully review and consider” it.

The revised offer includes a full backstop personally guaranteed by David Ellison’s father, Larry Ellison. Paramount increased its termination fee to $5.8 billion which matches Netflix’s. It also extended the deadline for the tender to later in January. The offer is still purchase Warner Bros.’ shares for $30 per share, all cash.

For months, there were rumors that Paramount and the Ellisons were interested in purchasing Warner Bros. In early December, Netflix “won” the deal offering $27.75 per share for just the Warner Bros. studios, HBO, and HBO Max. The broadcast portion of the company would be spun out into a new company, which was being planned anyways. The Paramount deal would be for the entire company. The Warner Bros. board then voted to rejected Paramount’s offer.

Warner Bros. fifth largest shareholder, Harris Oakmark is on record stating the revised offer is still not good enough. Harris Oakmark owns about 4% of the shares of the company as of September. It was looking for a “greater incentive” from Paramount.

The changes in Paramount’s new offer were necessary, but not sufficient. We see the two deals as a toss-up, and there is a cost to changing paths. If Paramount is serious about winning, they’re going to need to provide a greater incentive.

-Harris Oakmark portfolio manager and Director of U.S. Research Alex Fitch

Warner Bros. investors have until January 27 to accept or reject the tender offer.