Activist hedge fund Ancora Holdings has built a roughly $200 million stake in Warner Bros Discovery (WBD) and will oppose the studio's proposed sale to Netflix, favoring instead a higher bid from Paramount Skydance. The Wall Street Journal reported the move, citing sources, as Ancora could announce its position imminently. Ancora believes WBD failed to properly engage with Paramount's $108.4 billion offer, significantly higher than Netflix's $82.7 billion proposal.

This intervention injects fresh uncertainty into Warner's attempt to sell its core operations, which the studio's board has repeatedly rejected in favor of Netflix's bid, citing better value and regulatory prospects. Paramount responded by sweetening its offer, adding extra cash for each day the deal doesn't close and covering a potential breakup fee if Warner walks away from Netflix. Ancora, meanwhile, threatened a proxy fight if Warner doesn't consider Paramount's terms and plans to continue buying shares. A shareholder vote on the deal is now expected in March.