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

Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” fourth-quarter 2025 investor letter. The objective of the fund is to deliver capital appreciation by investing in diverse large-cap US companies. A copy of the letter can be downloaded here. In the quarter, the fund (investor class) outperformed the S&P 500 Index, returning 4.78% vs. 2.66% for the index. In addition, you can check the Fund’s top five holdings to determine its best picks for 2025.

In its fourth-quarter 2025 investor letter, Oakmark Fund highlighted stocks such as Warner Bros. Discovery, Inc. (NASDAQ:WBD). Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company. The one-month return for Warner Bros. Discovery, Inc. (NASDAQ:WBD) was 2.30%, and its shares gained 194.79% over the last 52 weeks. On January 13, 2026, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $28.86 per share, with a market capitalization of $71.558 billion.

Oakmark Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2025 investor letter:

"Warner Bros. Discovery, Inc. (NASDAQ:WBD) was the top contributor during the quarter. The U.S.-headquartered media company’s stock price surged as multiple parties submitted offers to acquire all or part of the business. Following several rounds of bidding, WBD announced an agreement to sell its Streaming and Studios business to Netflix, while spinning the Global Networks business to shareholders. Paramount Skydance subsequently made a direct $30 per share offer to shareholders for the entire company. We are pleased with the steps the WBD board has taken thus far to unlock shareholder value. We will continue to closely monitor developments as this bidding war unfolds."

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 70 hedge fund portfolios held Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of the third quarter, up from 67 in the previous quarter. While we acknowledge the potential of Warner Bros. Discovery, Inc. (NASDAQ:WBD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Warner Bros. Discovery, Inc. (NASDAQ:WBD) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.