Ancora Opposes Warner Bros. Discovery's Sale to Netflix
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy WBD?
Source: seekingalpha
- Ancora's Stake: Activist investor Ancora Holdings has built a less than 1% stake in Warner Bros. Discovery (WBD), valued at approximately $200 million, and plans to continue purchasing shares, indicating its commitment to influencing the company's strategic direction.
- Acquisition Controversy: Ancora believes that Warner Bros. failed to adequately engage with Paramount Skydance (PSKY), which has made a hostile takeover bid, and may initiate a proxy fight if the board does not negotiate the best deal for shareholders, highlighting concerns over corporate governance.
- Board's Position: Warner Bros.' board has consistently backed Netflix's bid, asserting it offers
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Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WBD is 24.98 USD with a low forecast of 14.75 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 27.210
Low
14.75
Averages
24.98
High
30.00
Current: 27.210
Low
14.75
Averages
24.98
High
30.00
About WBD
Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a portfolio of branded content across television, film, streaming and gaming. The Company's segments include Studios, Networks and DTC. Studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to its networks/DTC services as well as third parties, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market, and others. Networks segment primarily consists of its domestic and international television networks. DTC segment primarily consists of its premium pay-TV and streaming services. Its brands and products include Discovery Channel, Max, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Warner Bros., and Cartoon Network.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Netflix's Warner Bros. Acquisition Sparks Uncertainty
- Financial Health: Netflix concluded 2025 with $4.4 billion in long-term debt, generating $13.3 billion in operating income and $11 billion in net income, reflecting a 29.4% operating margin and a 24.3% after-tax net profit margin, maintaining strong cash flow and predictable revenue despite consumer spending challenges.
- Stock Price Decline: Since reaching an all-time high on June 30, 2025, Netflix's stock has fallen 30% in the second half of 2025 and is down 12.3% year-to-date in 2026, while the S&P 500 has risen 1.3%, indicating market concerns over its future profitability.
- Acquisition Impact: Netflix announced its acquisition of Warner Bros. for $27.75 per share, totaling an enterprise value of $82.7 billion; while this move may enhance its content library and creation capabilities, it also increases leverage on its balance sheet, raising financial risk.
- Investor Reaction: Despite the potential for faster earnings growth from the acquisition, many investors are concerned about the impact on Netflix's high-margin, low-leverage profile, leading them to consider selling their shares to avoid potential risks, which has contributed to the ongoing pressure on the stock price.
See More
Ancora Opposes Warner Bros. Discovery's Sale to Netflix
- Ancora's Stake: Activist investor Ancora Holdings has built a less than 1% stake in Warner Bros. Discovery (WBD), valued at approximately $200 million, and plans to continue purchasing shares, indicating its commitment to influencing the company's strategic direction.
- Acquisition Controversy: Ancora believes that Warner Bros. failed to adequately engage with Paramount Skydance (PSKY), which has made a hostile takeover bid, and may initiate a proxy fight if the board does not negotiate the best deal for shareholders, highlighting concerns over corporate governance.
- Board's Position: Warner Bros.' board has consistently backed Netflix's bid, asserting it offers
See More
Investors Focus on Jobs Data and Earnings Reports
- Jobs Data Release: The Bureau of Labor Statistics is set to release the delayed January Non-Farm Payrolls report at 8:30 a.m. ET, which will provide crucial economic health indicators that could influence investor decisions and market trends.
- Nvidia Faces Competition: ByteDance is reportedly developing an AI chip and is in talks with Samsung Electronics for manufacturing, posing potential competitive pressure on Nvidia that could impact its market share and technological leadership.
- Retail Sentiment Shift: Retail sentiment towards the SPDR S&P 500 ETF remains 'bearish', while the Invesco QQQ Trust ETF sentiment has dropped from 'bearish' to 'extremely bearish', indicating heightened investor concerns over tech stocks that may affect their performance.
- Earnings Season Approaches: Investors are gearing up for quarterly earnings reports from companies like Shopify, Kraft Heinz, Unity Software, Cisco, QuantumScape, and MGM Resorts, which will provide critical insights into profitability outlooks and industry dynamics.
See More
Netflix's Warner Bros. Acquisition Sparks Stock Volatility
- Stock Price Pressure: Since reaching an all-time high on June 30, 2025, Netflix's stock has fallen 30% in the second half of 2025, and is down 12.3% year-to-date in 2026, indicating market uncertainty about its future prospects.
- Strong Financials: Despite challenges with consumer spending, Netflix achieved $45.2 billion in revenue and $11 billion in net income in 2025, with an operating income of $13.3 billion and an operating margin of 29.4%, showcasing its financial health as a high-margin cash cow.
- Acquisition Impact: Netflix announced the acquisition of Warner Bros. for $27.75 per share, totaling $82.7 billion, which may enhance its content library but also increases leverage on its balance sheet, raising financial risk concerns.
- Investor Confidence Shaken: While the acquisition could lead to faster earnings growth, investor anxiety over Netflix's future profitability and debt repayment capabilities has led some to sell shares to mitigate risk.
See More
Paramount Sweetens Bid for Warner Bros. with Ticking Fee
- Enhanced Acquisition Offer: Paramount has sweetened its hostile bid for Warner Bros. by introducing a ticking fee of $0.25 per share, which could provide shareholders with approximately $650 million in cash value each quarter if the deal is not closed by December 31, thereby boosting shareholder confidence in the transaction.
- Financing Commitments Secured: The revised bid is fully financed with $43.6 billion in equity commitments and $54 billion in debt commitments, demonstrating Paramount's strong resolve and market confidence in pursuing the acquisition.
- Positive Market Reaction: Warner Bros.' stock price surged nearly 158% during the deal discussions, closing at $27.80, indicating optimistic market expectations regarding the acquisition potential and highlighting investor interest in Paramount's offer.
- Potential Board Changes: Ancora's plan to nominate director candidates to replace individuals linked to WBD CEO David Zaslav underscores shareholder concerns regarding corporate governance, which could significantly influence future strategic decisions.
See More
Ancora's Stake Pushes Warner Bros. Toward Paramount Negotiations
- Ancora Investment: Ancora Holdings has built a $200 million stake in Warner Bros. and is planning to push for negotiations with Paramount Skydance, indicating its influence on Warner's strategic direction.
- Acquisition Offer: Paramount Skydance has made a $30 per share acquisition offer, totaling $108.4 billion, and Ancora believes Warner has not adequately engaged, potentially leading to a proxy fight to protect shareholder interests.
- Market Reaction: Over the past three months, Netflix and Paramount shares have declined by 25.3% and 27%, respectively, while Warner's stock has surged over 23%, reflecting the market's complex response to the acquisition deal.
- Regulatory Review: The ongoing antitrust review and Paramount's aggressive pursuit have complicated the Warner-Netflix deal, with Netflix executives testifying before Congress that the transaction would not limit consumer choice but rather boost Hollywood's growth.
See More
Netflix's Warner Bros. Acquisition Sparks Uncertainty
- Financial Health: Netflix concluded 2025 with $4.4 billion in long-term debt, generating $13.3 billion in operating income and $11 billion in net income, reflecting a 29.4% operating margin and a 24.3% after-tax net profit margin, maintaining strong cash flow and predictable revenue despite consumer spending challenges.
- Stock Price Decline: Since reaching an all-time high on June 30, 2025, Netflix's stock has fallen 30% in the second half of 2025 and is down 12.3% year-to-date in 2026, while the S&P 500 has risen 1.3%, indicating market concerns over its future profitability.
- Acquisition Impact: Netflix announced its acquisition of Warner Bros. for $27.75 per share, totaling an enterprise value of $82.7 billion; while this move may enhance its content library and creation capabilities, it also increases leverage on its balance sheet, raising financial risk.
- Investor Reaction: Despite the potential for faster earnings growth from the acquisition, many investors are concerned about the impact on Netflix's high-margin, low-leverage profile, leading them to consider selling their shares to avoid potential risks, which has contributed to the ongoing pressure on the stock price.
See More
Ancora Opposes Warner Bros. Discovery's Sale to Netflix
- Ancora's Stake: Activist investor Ancora Holdings has built a less than 1% stake in Warner Bros. Discovery (WBD), valued at approximately $200 million, and plans to continue purchasing shares, indicating its commitment to influencing the company's strategic direction.
- Acquisition Controversy: Ancora believes that Warner Bros. failed to adequately engage with Paramount Skydance (PSKY), which has made a hostile takeover bid, and may initiate a proxy fight if the board does not negotiate the best deal for shareholders, highlighting concerns over corporate governance.
- Board's Position: Warner Bros.' board has consistently backed Netflix's bid, asserting it offers
See More
Investors Focus on Jobs Data and Earnings Reports
- Jobs Data Release: The Bureau of Labor Statistics is set to release the delayed January Non-Farm Payrolls report at 8:30 a.m. ET, which will provide crucial economic health indicators that could influence investor decisions and market trends.
- Nvidia Faces Competition: ByteDance is reportedly developing an AI chip and is in talks with Samsung Electronics for manufacturing, posing potential competitive pressure on Nvidia that could impact its market share and technological leadership.
- Retail Sentiment Shift: Retail sentiment towards the SPDR S&P 500 ETF remains 'bearish', while the Invesco QQQ Trust ETF sentiment has dropped from 'bearish' to 'extremely bearish', indicating heightened investor concerns over tech stocks that may affect their performance.
- Earnings Season Approaches: Investors are gearing up for quarterly earnings reports from companies like Shopify, Kraft Heinz, Unity Software, Cisco, QuantumScape, and MGM Resorts, which will provide critical insights into profitability outlooks and industry dynamics.
See More
Netflix's Warner Bros. Acquisition Sparks Stock Volatility
- Stock Price Pressure: Since reaching an all-time high on June 30, 2025, Netflix's stock has fallen 30% in the second half of 2025, and is down 12.3% year-to-date in 2026, indicating market uncertainty about its future prospects.
- Strong Financials: Despite challenges with consumer spending, Netflix achieved $45.2 billion in revenue and $11 billion in net income in 2025, with an operating income of $13.3 billion and an operating margin of 29.4%, showcasing its financial health as a high-margin cash cow.
- Acquisition Impact: Netflix announced the acquisition of Warner Bros. for $27.75 per share, totaling $82.7 billion, which may enhance its content library but also increases leverage on its balance sheet, raising financial risk concerns.
- Investor Confidence Shaken: While the acquisition could lead to faster earnings growth, investor anxiety over Netflix's future profitability and debt repayment capabilities has led some to sell shares to mitigate risk.
See More
Paramount Sweetens Bid for Warner Bros. with Ticking Fee
- Enhanced Acquisition Offer: Paramount has sweetened its hostile bid for Warner Bros. by introducing a ticking fee of $0.25 per share, which could provide shareholders with approximately $650 million in cash value each quarter if the deal is not closed by December 31, thereby boosting shareholder confidence in the transaction.
- Financing Commitments Secured: The revised bid is fully financed with $43.6 billion in equity commitments and $54 billion in debt commitments, demonstrating Paramount's strong resolve and market confidence in pursuing the acquisition.
- Positive Market Reaction: Warner Bros.' stock price surged nearly 158% during the deal discussions, closing at $27.80, indicating optimistic market expectations regarding the acquisition potential and highlighting investor interest in Paramount's offer.
- Potential Board Changes: Ancora's plan to nominate director candidates to replace individuals linked to WBD CEO David Zaslav underscores shareholder concerns regarding corporate governance, which could significantly influence future strategic decisions.
See More
Ancora's Stake Pushes Warner Bros. Toward Paramount Negotiations
- Ancora Investment: Ancora Holdings has built a $200 million stake in Warner Bros. and is planning to push for negotiations with Paramount Skydance, indicating its influence on Warner's strategic direction.
- Acquisition Offer: Paramount Skydance has made a $30 per share acquisition offer, totaling $108.4 billion, and Ancora believes Warner has not adequately engaged, potentially leading to a proxy fight to protect shareholder interests.
- Market Reaction: Over the past three months, Netflix and Paramount shares have declined by 25.3% and 27%, respectively, while Warner's stock has surged over 23%, reflecting the market's complex response to the acquisition deal.
- Regulatory Review: The ongoing antitrust review and Paramount's aggressive pursuit have complicated the Warner-Netflix deal, with Netflix executives testifying before Congress that the transaction would not limit consumer choice but rather boost Hollywood's growth.
See More
