Activist investor Ancora publicly opposes the WBD-Netflix deal

Netflix's ambitious $82.7 billion acquisition of Warner Bros. Discovery (WBD) is encountering formidable opposition from investment firm Ancora Holdings. The company has recently invested $200 million in WBD shares and expressed its disapproval of Netflix's offer, opting instead to support a competing proposal from Paramount. In a press release issued on Wednesday, Ancora voiced its concerns, aligning with Paramount's stance. The firm argues that the Netflix acquisition is less advantageous, carries greater regulatory risks, and does not provide as much immediate cash to shareholders. In a strategic move, Paramount sweetened its offer just one day prior by proposing an additional incentive: $0.25 per share for every quarter the acquisition remains incomplete after December 31, 2026. Furthermore, Paramount has committed to covering the $2.8 billion termination fee owed to Netflix should WBD shareholders favor its bid. Ancora's involvement is significant, as it seeks to galvanize other shareholders to oppose the Netflix deal, despite its relatively modest stake. The firm has cautioned that if WBD's board does not reconsider Paramount's offer, it plans to vote against the Netflix acquisition and demand accountability from the board at the company's 2026 annual meeting. However, the impact of Ancora's efforts remains uncertain. Just last month, WBD disclosed that over 93% of its shareholders had voted against Paramount's proposal, which they deemed less favorable, opting instead for the Netflix deal. Should Ancora manage to persuade even a handful of shareholders to shift their support, it could dramatically alter the landscape of the Netflix takeover, adding further unpredictability to an already tense situation.