The high-stakes battle over the future of Warner Bros. Discovery’s studios and streaming assets has taken another dramatic turn, with an activist investor publicly opposing the proposed sale to Netflix and throwing support behind a rival offer from Paramount Skydance.
The deal that would see Netflix acquire Warner’s movie and television studios – along with HBO Max – has dominated entertainment news for months as one of the industry’s biggest potential mergers. Valued at roughly $82.7 billion including debt, Netflix’s proposal would expand its content empire and make it the largest streaming service in the world.
Now, that deal is facing fresh opposition after Ancora Holdings, an activist investor that has built a roughly $200 million stake in Warner Bros. Discovery, said this week it plans to vote against the agreement unless Warner’s board reconsiders in favor of Paramount’s rival bid. Ancora claims Netflix’s deal offers inferior value and carries significant regulatory risk, and it says shareholders would be better served by Paramount’s proposal, which carries a higher per-share cash offer.
Ancora’s stance adds pressure to what has already been a contentious takeover fight. Paramount’s rival bid, backed by major investors including the Ellison family and financial partners, stands at roughly $108.4 billion including debt and includes incentives such as quarterly “ticking fees” for delays and covering Warner’s potential breakup fee if the Netflix deal collapses. Paramount has also secured regulatory filings and foreign clearances that it says give its bid a more certain path to approval.
For its part, Warner Bros. Discovery has said it continues to review Paramount’s updated offer but has so far maintained its recommendation for the Netflix deal. The company insists that its board is acting in the best interests of shareholders, though it has acknowledged the revised bid and its enhanced terms.
The dispute underscores the complexity of media mergers in an era of heightened regulatory scrutiny. The proposed Netflix acquisition has drawn attention from antitrust watchdogs in the United States and abroad, given the potential for the combined entity to wield significant influence over streaming content distribution. Paramount, meanwhile, argues that its offer presents a clearer path to approval with less risk of regulatory pushback.
Market watchers say the next key milestone will likely be a shareholder vote scheduled for later in the spring, where Warner Bros. investors will decide whether to back the existing Netflix agreement or throw their support behind Paramount’s enhanced bid. Analysts suggest that if more shareholders align with Ancora’s view, it could force Warner’s board to take a second look or face internal challenges.
As the battle unfolds, one thing is clear: the future of one of Hollywood’s most prized collections of studios, franchises, and streaming assets is far from settled — and Netflix’s long-touted expansion via acquisition may face a tougher road than previously anticipated.