Hedge Fund Takes Significant Stake in Warner Bros. Discovery, Eyes Opposition to Netflix Deal
A prominent activist hedge fund, Ancora Holdings, has reportedly amassed a substantial stake, estimated to be around US$200 million (approximately S$270 million), in Warner Bros. Discovery (WBD). This strategic move signals a potential challenge to the company’s proposed sale of its film and television studios, with reports indicating Ancora is preparing to oppose a deal with Netflix. The Wall Street Journal was among the first to report on Ancora’s intentions.
This development injects a new layer of complexity and uncertainty into the high-stakes corporate maneuvering that has enveloped the Hollywood entertainment giant for months. The ongoing takeover saga has seen Netflix and Paramount Global’s Skydance Media emerge as key competing bidders, each vying for control of WBD’s valuable studio assets.
Ancora’s Stance Against the Netflix Bid
Sources suggest that Ancora has been actively increasing its holdings in Warner Bros. Discovery in anticipation of a potential proxy fight with the company’s current board of directors. The hedge fund is expected to articulate a strong argument that WBD’s leadership has not sufficiently explored or engaged with a seemingly superior competing offer from David Ellison’s Skydance Media.
The financial proposals on the table present a stark contrast. Netflix has reportedly put forward an offer valued at approximately US$82.7 billion (around S$112 billion) for the studio assets. In comparison, Paramount’s rival proposal from Skydance is a significantly higher US$108.4 billion (approximately S$147 billion).
Despite the substantial difference in valuation, Warner Bros. Discovery’s board has, up to this point, publicly favoured the Netflix bid. Reports indicate that the board’s preference stems from a belief in the “greater value certainty,” “stronger financing,” and a “clearer path through regulatory approvals” associated with Netflix’s offer. The proposed Netflix transaction is designed to carve out WBD’s core studio and streaming operations, including the prestigious HBO Max platform, while also separating certain legacy cable news assets. Proponents of this structure argue that it mitigates risks compared to a complete acquisition of the entire company.
Paramount’s Aggressive Counter-Offer and Strategic Maneuvers
Following multiple rejections of its earlier overtures, Paramount’s Skydance Media has adopted a more aggressive, shareholder-centric approach. This renewed offensive includes several incentives aimed at neutralizing the perceived advantages of the Netflix deal.
Key among these sweeteners is an offer to cover the reported US$2.8 billion (approximately S$3.8 billion) termination fee that Warner Bros. Discovery would be obligated to pay Netflix should the company opt to switch its allegiance. Furthermore, Paramount is proposing a “ticking fee,” an additional cash payment to WBD shareholders for every quarter the deal remains in limbo. This ticking fee is reportedly set at US$0.25 (around S$0.34) per share, translating to a substantial US$650 million (approximately S$880 million) per quarter.
Paramount’s renewed push has also unfolded against a politically charged backdrop, particularly concerning its subsidiary, CBS. Critics have alleged that Paramount has made strategic decisions to appease former President Donald Trump and his allies as the company navigated various regulatory hurdles.
In a notable development, Paramount agreed in mid-2025 to pay US$16 million (approximately S$21.7 million) to settle a lawsuit filed by Donald Trump, which was linked to a “60 Minutes” interview.
The political connections of Skydance’s leadership have also drawn scrutiny. David Ellison, the CEO of Skydance and son of Oracle co-founder Larry Ellison, is known to have long-standing ties to Donald Trump’s political circle. The elder Ellison is a prominent Republican donor and a known supporter of the former president.
More recently, CBS News has experienced a period of internal upheaval, marked by a series of decisions made under its editor-in-chief, Bari Weiss. Weiss, a high-profile hire announced after Paramount agreed to acquire her media startup, The Free Press, has been at the centre of newsroom discussions. Her arrival has reportedly been accompanied by anxieties regarding editorial independence, with concerns raised that leadership choices might have been influenced by a desire to reassure regulators and political figures during the ongoing deal-making process.
Ancora’s Activist Agenda
Ancora Holdings is widely recognised as an activist investor. This type of hedge fund typically acquires significant stakes in publicly traded companies with the explicit aim of influencing their strategic direction, management composition, or major corporate transactions.
It is understood that Ancora is supportive of Paramount’s proposal for Warner Bros. Discovery. The hedge fund may initiate a proxy fight if WBD’s board remains unwilling to reconsider the competing bid from Skydance.
The activist investor also intends to continue acquiring Warner Bros. Discovery shares. A shareholder vote on the proposed Netflix deal is anticipated in early spring, setting the stage for what is shaping up to be a potentially contentious battle for the future of one of Hollywood’s most iconic and storied film and television studio empires.
