An activist investment firm, Ancora Holdings Group, has rapidly built a stock position in Hollywood streaming and production leader Warner Bros. Discovery (WBD.US), according to media reports citing informed sources. Specific details regarding the size of the stake and Ancora's intentions are not yet available, and representatives for both Ancora and Warner Bros. have not immediately responded to requests for comment.

Sources indicate that the recently invested activist fund, whose stake could be influential, plans to oppose a recently agreed-upon acquisition deal between Warner's management and streaming giant Netflix (NFLX.US). Under this deal, Warner would sell its film and television production studio, along with its HBO Max streaming service, to Netflix. Warner Bros. management recently stated in an announcement that it intends to put the acquisition deal with streaming leader Netflix to a shareholder vote before April. The company is scheduled to hold its annual general meeting to elect directors several months later, which could render any potential proxy contest irrelevant.

Warner Bros. Discovery is the target of competing acquisition offers from Netflix and another major Hollywood studio, Paramount Global. The company has agreed to sell its production studio and HBO Max service to Netflix for $27.75 per share as part of a transaction valued at $82.7 billion, including debt. It also plans to soon spin off its traditional cable networks, such as CNN and TNT, to its shareholders. Paramount Global, led by technology scion David Ellison with key support from his billionaire father, Oracle founder Larry Ellison, currently plans to acquire the entirety of Warner Bros. Discovery for $30 per share—a higher offer valuing the enterprise at approximately $108.4 billion.

This major Hollywood acquisition has encountered another significant development. While Warner Bros. has repeatedly rejected overtures from Paramount Global's management and publicly stated its intention to advance the merger plan with Netflix, Paramount Global has initiated a tender offer for the company's shares. On one hand, Warner Bros. management and board continue to advance the cash transaction with Netflix, planning to submit it for a final shareholder vote by April 2026; the company has also publicly recommended that shareholders reject Paramount Global's tender offer. On the other hand, Paramount Global has bypassed management, directly extending its tender offer to shareholders and, in its latest version, has added incentives such as covering Warner's approximately $2.8 billion termination fee payable to Netflix if the Netflix deal is canceled. It has also committed to providing solid backing for refinancing Warner Bros.' debt if necessary, including paying associated fees of $1.5 billion. To emphasize confidence in securing prompt US antitrust approval, Paramount Global stated it would pay a "ticking fee" to Warner shareholders: a dividend of $0.25 per share for each quarter beyond December 31st that the transaction remains uncompleted.

Ancora has previously advocated for mergers in other sectors. Following a merger announcement between Union Pacific Corp and Norfolk Southern Corp, Ancora publicly pressured CSX Corp to pursue mergers, though no transaction as advocated by Ancora materialized. Last year, Ancora campaigned to force U.S. Steel to abandon a takeover offer from Japan's Nippon Steel, but the activist investor ultimately abandoned the fight months later, and U.S. Steel completed that transaction.

The involvement of an activist investor often signals an attempt to intensify bidding competition or strengthen negotiating leverage. Currently, the stock price of Warner Bros. Discovery (WBD.US) is largely anchored to merger scenarios: the market is pricing in both the agreed-upon $27.75 per share deal with Netflix and the competing $30 per share bid from Paramount Global (claiming an enterprise value of ~$108.4B). Ancora's decision to invest now may be intended to bring the question of accepting a higher offer to the forefront, increasing the probability of a superior bid or improved terms emerging. Reports suggest Ancora has built a position worth approximately $200 million and leans toward opposing the Netflix acquisition, pushing the company to take Paramount Global's offer more seriously, and potentially even initiating a proxy fight. Activist funds like Ancora often use shareholder letters, public statements, or proxy contests to pressure management into actions that maximize shareholder value. Therefore, Ancora's investment is a short-term positive for Warner's stock and increases the potential for short-term volatility and unexpected upside "option value"; however, it does not automatically imply an imminent sharp rally, as the stock price is strongly anchored to the acquisition offers, and the outcome depends on (a) the emergence of a stronger bid, (b) shareholder voting and board processes, and (c) regulatory review and deal completion timing.

For Netflix, successfully acquiring Warner would grant it an immensely vast IP library. For Netflix's core revenue-dependent streaming platform, acquiring Warner Bros. (including the "non-cable assets" in this deal, such as the Warner Bros. film/TV studios, HBO and HBO Max with their libraries) would essentially transform Netflix from a "pure-play platform streamer" into an integrated giant combining "platform + top-tier studio + super library/IP." This would turn high-value content, which it has long needed to procure or license externally, into controllable long-term assets, providing a significant advantage in the "streaming wars." For Netflix, the global streaming leader already possessing a wide array of popular IP, absorbing Warner Bros. would significantly strengthen its content moat and pricing power. It could use classic libraries and long-running series to improve user retention, while leveraging super IPs to drive new films, spin-off series, games, licensing, and merchandise. It would also integrate HBO's acclaimed prestige drama production capabilities into Netflix's global distribution system. If the deal proceeds, Netflix would possess major popular IPs, including numerous fantasy/super IPs like Harry Potter/the "Wizarding World" (including Fantastic Beasts), the DC Universe (Batman, Superman, Wonder Woman, Suicide Squad, etc.), The Matrix series, The Conjuring series, The Lord of the Rings series, The Hobbit series, and the Dune series, among other globally popular IPs. It would also include HBO's flagship series universe, such as the Game of Thrones series (including spin-offs like House of the Dragon and A Knight of the Seven Kingdoms).