Ancora Capital builds stake in Warner Bros, plans to oppose Netflix deal

Feb 11 (Reuters) - Activist capitalist Ancora Capital has built a involvement successful Warner Bros Discovery and plans to reason the media company's woody with Netflix for its studios and streaming assets, ‌the latest twist successful the heated Hollywood takeover battle.

Ancora, which has a involvement of astir $200 cardinal ‌in the HBO owner, said connected Wednesday Warner Bros' committee has not adequately engaged successful talks with Paramount Skydance implicit a rival connection ​for the full company, including cablegram assets specified arsenic CNN and TNT.

"The presently projected Netflix-WBD woody asks shareholders to judge inferior value, gamble connected an uncertain spinoff and enarthrosis important regulatory hazard — contempt the availability of a higher worth and much definite $30 per stock connection from Paramount," the activistic capitalist said connected its website.

Paramount and Netflix some covet ‌Warner Bros for its starring movie and ⁠television studios, extended contented room and large franchises specified arsenic "Game of Thrones," "Harry Potter" and DC Comics superheroes similar Batman.

Warner Bros, Paramount and Netflix did not instantly respond to Reuters ⁠requests for comment. Warner Bros has a marketplace worth of astir $68 billion, implying that Ancora's involvement represents little than 1% of its outstanding shares.

Paramount had connected Tuesday sweetened its bid by offering Warner Bros investors other currency for each 4th ​the ​deal fails to adjacent aft this twelvemonth and agreeing to ​cover the $2.8 cardinal breakup interest the HBO ‌owner would beryllium Netflix if it walked away.

It did not summation its bid of $30 per share, oregon $108.4 cardinal including debt, but stressed again that its connection has a clearer way to regulatory support than the Netflix woody of $27.75 per share, oregon $82.7 cardinal including debt.

The CBS proprietor had past period extended the deadline for its tender connection to February 20 to person investors. Analysts person said Paramount would person to rise its connection to restart woody ‌talks with the Warner Bros board.

Warner Bros has said it ​plans to clasp a shareholder ballot by April for the Netflix ​deal.

Central to the bidding warfare is simply a planned ​spin-off of Warner Bros' cablegram assets that is important to the Netflix deal.

The Warner ‌Bros committee believes the Netflix acquisition is superior ​to Paramount's bid arsenic its ​investors would clasp a involvement successful the separately traded Discovery Global.

Paramount has argued the cablegram assets are virtually worthless and that Netflix's connection leaves Warner Bros shareholders exposed to important uncertainty arsenic the magnitude ​of currency they would person depends ‌on Discovery Global's fiscal information astatine the clip of the spinoff.