Ancora Challenges Warner Bros. Discovery in Public Opposition
Investment group Ancora Holdings has made a bold move against Netflix’s massive $82.7 billion bid for Warner Bros. Discovery (WBD). Ancora has acquired $200 million in WBD shares, expressing its opposition to Netflix’s offer and lending support to a competing bid from Paramount.
Ancora’s Position Against Netflix
In a statement released recently, Ancora highlighted key concerns regarding the proposed Netflix deal. The group argues that the Netflix acquisition is not only inferior and carries more regulatory risk, but also fails to provide immediate financial benefits to shareholders.
Paramount’s Enhanced Offer
On the heels of this opposition, Paramount has sweetened its proposal for WBD shareholders. The updated bid includes:
- $0.25 per share for each quarter that the deal remains unclosed beyond December 31, 2026.
- Coverage of the $2.8 billion termination fee that would be owed to Netflix if WBD shareholders opt for Paramount’s offer.
Potential Impact on WBD Shareholders
Ancora’s intervention is particularly noteworthy, even though its stake is relatively modest. The firm aims to mobilize other shareholders to reject the Netflix proposal. Ancora has made it clear that if the WBD board does not reconsider Paramount’s offer, it intends to vote against Netflix’s acquisition and hold the board accountable during the 2026 annual meeting.
Shareholder Sentiment and Voting Patterns
Despite Ancora’s efforts, challenges remain. Last month, WBD announced that over 93% of shareholders voted against Paramount’s previous offer, showing strong preference for the Netflix deal. This overwhelming support complicates Ancora’s attempts to influence shareholder sentiment.
The evolving dynamics of this situation could lead to increased unpredictability. If Ancora successfully sways even a few shareholders, it could significantly alter the course of the Netflix takeover. The stakes are high as the battle for Warner Bros. Discovery unfolds.
