The proposed $82.7 billion acquisition of Warner Bros. Discovery (WBD) by Netflix, a deal poised to reshape the media landscape, has hit an unexpected snag. Activist investment firm Ancora Holdings has publicly declared its opposition, injecting a fresh wave of uncertainty into the high-profile merger.
Ancora’s Bold Intervention
Ancora, which recently acquired a $200 million stake in WBD, announced its firm rejection of Netflix’s offer. Instead, the investment group is throwing its considerable weight behind a rival bid from Paramount, arguing that Netflix’s proposal is “inferior.” In a recent press release, Ancora echoed Paramount’s concerns, citing higher regulatory risks and a less attractive immediate cash return for WBD shareholders as key reasons for its stance.
Paramount Sweetens the Deal
Paramount, keen to secure the deal, had already sweetened its offer just a day prior to Ancora’s announcement. The revised bid includes a unique incentive: WBD shareholders would receive an additional $0.25 per share for each quarter the deal remains unclosed beyond December 31, 2026. Furthermore, Paramount has pledged to absorb the hefty $2.8 billion termination fee that WBD would owe Netflix should Paramount’s offer ultimately prevail.
The Shareholder Battleground
While Ancora’s $200 million stake represents a relatively modest portion of WBD’s total valuation, its intervention is strategically significant. The firm is actively seeking to galvanize other shareholders to reject the Netflix proposal. Ancora has issued a clear warning: if the WBD board fails to reconsider Paramount’s enhanced offer, it will vote against the Netflix deal and push for board accountability at the company’s 2026 annual meeting. This move sets the stage for a potentially contentious shareholder vote.
An Uncertain Outcome Ahead
The path forward, however, remains far from clear. Only last month, WBD revealed that over 93% of its shareholders had voted against what the company then described as Paramount’s “less attractive” offer, signaling strong initial support for the Netflix acquisition. The question now is whether Ancora’s vocal opposition and strategic maneuvering can sway enough shareholders to reverse this earlier sentiment. Should Ancora succeed in shifting even a small percentage of votes, the entire Netflix takeover could be dramatically jeopardized, transforming an already tense situation into an unpredictable corporate drama.
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