Mario Gabelli, a prominent fund manager known as "Wall Street's Super Mario," stated he is "highly likely" to tender his clients' shares in Warner Bros. Discovery (WBD.US) to Paramount Skydance (PSKY.US) in an effort to trigger a bidding war between Paramount and Netflix (NFLX.US) for the media giant.

In an interview, Gabelli suggested Paramount would ultimately need to raise its $30-per-share offer for Warner Bros., while Netflix would counter with a higher bid. Selling shares to Paramount signals support for this outcome, he explained.

Gabelli, a veteran media investor, attended Paramount's presentation at the UBS conference on Tuesday and came away impressed. He praised Paramount's management for handling potential regulatory hurdles, including state-level challenges, "exceptionally well."

Data shows Gabelli's firm and funds hold nearly 5.7 million Warner Bros. shares, worth approximately $160 million as of Tuesday's close, alongside stakes in Paramount and Netflix.

Last week, Warner Bros. agreed to sell its streaming and film production assets, including HBO, to Netflix for $27.75 per share in cash and stock. Paramount publicly announced an all-cash bid for Warner Bros. on Monday, arguing its offer is superior.

Gabelli plans to participate in the bidding, citing "deal terms favoring Paramount," including an all-cash proposal that avoids reliance on publicly traded stock or a spin-off of Warner Bros.' cable networks—unlike Netflix's offer.

He declined to name a preferred buyer for Warner Bros., stating, "I don’t like endorsing anything." Instead, he envisions a "classic bidding war. That’s why you play the card (tender offer). It’s like Texas hold’em."

Separately, Gabelli’s firm disclosed in a regulatory filing Tuesday that it increased its stake in cinema and hotel chain Marcus (MCS.US). He sees theaters as a bargain amid weak box office performance and Hollywood production cuts, calling the timing opportune.

A Paramount acquisition of Warner Bros. would be "clearly better" for cinemas, Gabelli added, noting Warner Bros. management’s faith in traditional theatrical releases.