Warner Bros Discovery (WBD) Surged Following Acquisition Offers from Multiple Parties

Core Viewpoint - Oakmark Fund's fourth-quarter 2025 investor letter highlights its strong performance, particularly focusing on Warner Bros. Discovery, Inc. as a key investment opportunity due to its recent strategic moves and stock performance [1][3]. Performance Summary - The Oakmark Fund (investor class) achieved a return of 4.78% in the fourth quarter of 2025, outperforming the S&P 500 Index, which returned 2.66% [1]. - Warner Bros. Discovery, Inc. (NASDAQ:WBD) experienced a one-month return of 2.30% and a remarkable 194.79% increase over the last 52 weeks, closing at $28.86 per share with a market capitalization of $71.558 billion on January 13, 2026 [2]. Company Developments - Warner Bros. Discovery, Inc. was the top contributor to the Oakmark Fund's performance during the quarter, driven by multiple acquisition offers for the company [3]. - The company announced an agreement to sell its Streaming and Studios business to Netflix while spinning off its Global Networks business to shareholders [3]. - Paramount Skydance made a direct offer of $30 per share to shareholders for the entire company, indicating strong interest in acquiring Warner Bros. Discovery [3]. Hedge Fund Interest - At the end of the third quarter, 70 hedge fund portfolios held shares of Warner Bros. Discovery, an increase from 67 in the previous quarter, reflecting growing interest among institutional investors [4].