Activist Investor Ancora Throws $200 Million Wrench Into Netflix's Warner Bros. Discovery Takeover

Netflix’s $82.7 billion plan to acquire Warner Bros. Discovery has hit a fresh obstacle. The activist investment firm Ancora Holdings has taken a $200 million position in WBD and is publicly campaigning against the streaming giant’s offer. Ancora is instead backing a competing bid from Paramount Global, a move first reported by The Wall Street Journal.

In a statement released Wednesday, Ancora echoed Paramount’s stance, arguing the Netflix agreement carries greater regulatory uncertainty and provides less upfront value to shareholders. The firm’s intervention comes just a day after Paramount sweetened its own proposal, adding a quarterly incentive payment for shareholders if the deal extends beyond the end of 2026 and promising to cover a $2.8 billion breakup fee owed to Netflix.

While Ancora’s stake is modest, its strategy is to mobilize larger shareholders to reject the Netflix deal. The investor has stated it will vote against the acquisition and push for board changes at WBD’s 2026 annual meeting if the company’s directors do not engage with Paramount’s improved terms.

The outcome is far from assured. Last month, over 93% of WBD shareholders voted to support the Netflix transaction, rejecting what was then Paramount’s lower offer. Ancora now faces the difficult task of shifting that overwhelming sentiment. However, if the firm succeeds in persuading even a small bloc of investors to reconsider, it could destabilize the entire arrangement, injecting new volatility into a high-stakes corporate standoff.

Source: TechCrunch