The activist investor says Warner Bros’ board has not adequately engaged in talks with Paramount
Published Wed, Feb 11, 2026 · 08:30 PM
[LOS ANGELES] Activist investor Ancora Capital has built a stake in Warner Bros Discovery and plans to oppose the media company’s deal with Netflix for its studios and streaming assets, the latest twist in the heated Hollywood takeover battle.
Ancora, which has a stake of around US$200 million in the HBO owner, said on Wednesday (Feb 11) Warner Bros’ board has not adequately engaged in talks with Paramount Skydance over a rival offer for the whole company, including cable assets such as CNN and TNT.
“The currently proposed Netflix-WBD deal asks shareholders to accept inferior value, gamble on an uncertain spinoff and shoulder significant regulatory risk – despite the availability of a higher value and more certain US$30 per share offer from Paramount,” the activist investor said on its website.
Paramount and Netflix both covet Warner Bros for its leading film and television studios, extensive content library and major franchises such as Game of Thrones, Harry Potter and DC Comics superheroes like Batman.
Warner Bros, Paramount and Netflix did not immediately respond to Reuters requests for comment. Warner Bros has a market value of about US$68 billion, implying that Ancora’s stake represents less than 1 per cent of its outstanding shares.
Paramount had on Tuesday sweetened its bid by offering Warner Bros investors extra cash for each quarter the deal fails to close after this year and agreeing to cover the US$2.8 billion breakup fee the HBO owner would owe Netflix if it walked away.
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It did not increase its bid of US$30 per share, or US$108.4 billion including debt, but stressed again that its offer has a clearer path to regulatory approval than the Netflix deal of US$27.75 per share, or US$82.7 billion including debt.
The CBS owner had last month extended the deadline for its tender offer to Feb 20 to convince investors. Analysts have said Paramount would have to raise its offer to restart deal talks with the Warner Bros board.
Warner Bros has said it plans to hold a shareholder vote by April for the Netflix deal.
Central to the bidding war is a planned spinoff of Warner Bros’ cable assets that is crucial to the Netflix deal.
The Warner Bros board believes the Netflix acquisition is superior to Paramount’s bid as its investors would retain a stake in the separately traded Discovery Global.
Paramount has argued the cable assets are virtually worthless and that Netflix’s offer leaves Warner Bros shareholders exposed to significant uncertainty as the amount of cash they would receive depends on Discovery Global’s financial condition at the time of the spinoff.
The David Ellison-led company has extended the deadline for its tender offer to Feb 20, giving it more time to convince investors. REUTERS
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