An Activist Investor Emerges to Try Thwarting Netflix's Proposed Acquisition of Warner Bros.' Assets. What Will Happen Next?

Core Viewpoint - The acquisition battle for Warner Bros. Discovery involves significant stakes from both Netflix and Paramount, with activist investor Ancora Holdings influencing the situation by opposing Netflix's proposal [2][9][10]. Group 1: Acquisition Details - Netflix and Warner Bros. Discovery announced an agreement for Netflix to acquire Warner Bros.' film and television studios for an enterprise value of nearly $83 billion, assuming about $10 billion in debt [5]. - Paramount made a competing all-cash offer of $30 per share, totaling approximately $108.4 billion, including debt, backed by Oracle CEO Larry Ellison's personal guarantee of over $40 billion in equity financing [6]. - Paramount has enhanced its offer by proposing to pay Warner Bros. $650 million in "ticking fees" per quarter starting in 2027 until the acquisition closes, and it will cover the $2.8 billion termination fee owed to Netflix if Warner backs out [11]. Group 2: Activist Investor Influence - Ancora Holdings has acquired a $200 million stake in Warner Bros. Discovery, representing about 0.3% of the company, and plans to vote against the proposed sale to Netflix [9][13]. - Ancora expressed concerns regarding the uncertainty of cash consideration and debt allocation in the Netflix deal, as well as the potential for regulatory approval issues [10]. - The involvement of Ancora could rally other activists or sway investors to oppose the Netflix deal, despite its relatively small stake [13]. Group 3: Future Developments - Warner Bros. Discovery plans to review Paramount's updated deal, with a shareholder meeting to vote on the Netflix deal expected in late March or early April [14]. - Netflix aims to finalize its acquisition of Warner Bros.' assets within 12 to 18 months, contingent on regulatory approval [14].