Warner Bros. Discovery board faces pressure as activist investor threatens to vote no on Netflix deal

Core Viewpoint - Activist investor Ancora Holdings is urging Warner Bros. Discovery to negotiate with Paramount regarding a revised bid, threatening to vote against the proposed deal with Netflix if their request is not met [1][2]. Group 1: Ancora's Position - Ancora Holdings believes that Paramount's latest offer could be superior to the Netflix transaction, highlighting its stake in Warner Bros. Discovery is valued at approximately $200 million, representing less than 1% of the company's $69.4 billion market cap [2]. - Ancora expressed concerns about the uncertainty surrounding the equity value and debt allocation for the planned spinoff of Warner's cable channels, which is still set to occur under the Netflix agreement [3]. - The firm noted that the backing of Larry Ellison, co-founder of Oracle and father of David Ellison, adds credibility to Paramount's bid, while also raising concerns about potential regulatory hurdles for Netflix [3]. Group 2: Regulatory and Political Context - Senators have questioned Netflix's Co-CEO Ted Sarandos regarding potential antitrust issues related to the Warner Bros. acquisition, with Sarandos stating that the combined entity would hold 20% of the U.S. television streaming market, below the 30% monopoly threshold [4]. - Ancora indicated that Paramount is perceived as the current administration's favored bidder, suggesting it may receive stronger political support, particularly due to the Ellison family's relationship with President Trump [5]. - Ancora's presentation emphasized that there remains a clear and actionable path for a favorable outcome for Warner shareholders, referring to Paramount's latest offer as an opportunity [6]. Group 3: Voting Intentions - Ancora has announced its intention to vote against the Netflix deal and may seek to elect new directors at the upcoming Warner Bros. shareholders meeting [7].