Core Viewpoint - Netflix's $82.7 billion bid to acquire Warner Bros. Discovery (WBD) is encountering significant opposition from Ancora Holdings, which has purchased $200 million in WBD shares and supports a rival bid from Paramount [1][2]. Group 1: Ancora Holdings' Position - Ancora Holdings argues that the Netflix deal is inferior, carries more regulatory risk, and does not provide as much immediate cash to shareholders compared to Paramount's offer [2]. - Ancora is attempting to rally other shareholders to reject Netflix's proposal and has warned that it will vote against the Netflix deal if WBD's board does not reconsider Paramount's proposal [4]. Group 2: Paramount's Offer - Paramount has enhanced its bid by offering WBD shareholders an additional $0.25 per share for each quarter the deal remains unclosed after December 31, 2026, and has pledged to cover the $2.8 billion termination fee owed to Netflix if WBD shareholders choose its offer [3]. Group 3: Shareholder Sentiment - Despite Ancora's efforts, it is uncertain whether it can influence a significant number of other shareholders, as over 93% of WBD shareholders previously voted against Paramount's offer in favor of the Netflix deal [5]. - If Ancora successfully sways some shareholders, it could dramatically alter the dynamics of the Netflix takeover situation, making it more unpredictable [5].

Part of gaining experience as an investor is understanding the lifecycle that most companies face. Many investors start out by becoming familiar with a company at the peak of its success, having generated strong growth and seeming to be on a path that will lead to even greater heights for revenue and profits. Sometimes, that growth can continue for a long time. Eventually, though, most companies reach a point at which what has worked in the past no longer works quite as well, forcing them to switch gears a ...

Core Viewpoint - Activist investor Ancora Alternatives LLC is pressuring Warner Bros. Discovery (WBD) to engage with Paramount regarding a potential superior offer, threatening to oppose WBD's current deal with Netflix if they do not comply [1][2][3] Group 1: Activist Investor Actions - Ancora Alternatives LLC has threatened to vote 'no' on the Netflix deal and initiate a proxy fight if WBD does not engage with Paramount [1] - The firm has sweetened its hostile takeover offer for Warner Bros. Discovery in an effort to disrupt the Netflix agreement [1] Group 2: WBD Board's Position - The WBD board is now compelled to consider Paramount's amended offer as a potential superior proposal due to Netflix's inferior proposal and unresolved regulatory issues [2] - If the WBD board fails to engage with Paramount, Ancora will hold them accountable at the 2026 shareholder meeting [2] Group 3: Criticism of WBD's Decision - Ancora criticized the WBD board for hastily entering into a flawed deal with Netflix instead of pursuing a superior offer from Paramount, which they argue is a violation of the directors' fiduciary duties [3]

Core Viewpoint - Activist investor Ancora Holdings is opposing Warner Bros. Discovery's (WBD) proposed $72 billion sale of its movie and TV studios and HBO Max streaming service to Netflix, favoring a rival all-cash bid from Paramount Skydance valued at approximately $78 billion [1][2]. Group 1: Ancora Holdings' Position - Ancora Holdings has built a stake in WBD valued at about $200 million and is considering a proxy fight if the board does not negotiate with Paramount over its offer [3]. - Ancora has raised concerns regarding the Netflix deal, labeling it as "uncertain and inferior," and has criticized the planned Discovery Global spinoff that would burden cable-TV networks with around $17 billion in debt [5]. - Ancora has questioned CEO David Zaslav's motivations, suggesting he may favor the Netflix deal to secure an executive role with the streaming company post-transaction [4]. Group 2: Paramount's Offer - Paramount has made a cash offer of $30 per share for WBD, which includes a "ticking fee" of 25 cents per share for each quarter the deal remains unclosed after the end of 2026, potentially amounting to $650 million in cash value for every quarter [12][13]. - The revised offer also includes funding for a $2.8 billion termination fee that WBD would owe Netflix if the deal collapses, as well as eliminating a potential $1.5 billion debt refinancing cost [16]. - Paramount's offer is backed by $43.6 billion in equity commitments and $54 billion in debt commitments from major financial institutions [17]. Group 3: WBD's Response - WBD has received Paramount's amended offer and stated that its board will review it, although it has consistently recommended that shareholders reject Paramount's bid in favor of the Netflix acquisition [18].

Core Viewpoint - Netflix's stock has declined 12.32% year-to-date, raising questions about its growth trajectory in the streaming market, especially after missing Q3 2025 earnings expectations by 15.71% [1] Group 1: Financial Performance - Netflix reported an EPS of $0.59 for Q3 2025, missing the expected $0.70, marking a 15.71% shortfall and breaking a streak of earnings beats in 2024 [1] - EPS has declined sequentially from $0.72 in Q2 2025 to $0.59 in Q3 2025, and further to $0.56 in Q1 2026, indicating operational pressure [1] - The company achieved a quarterly revenue growth of 17.6% year-over-year and maintains a profit margin of 24.3% with a return on equity of 42.8% [1] Group 2: Competitive Landscape - Competitive intensity is increasing, with NBC investing over $8 billion in sports rights for 2026 to enhance its Peacock service against Netflix and Amazon [1] - Disney continues to expand its streaming portfolio, leveraging its strong IPs like Marvel and Star Wars, posing a significant competitive threat [1] - Paramount Skydance has raised its bid for Warner Bros. Discovery, indicating aggressive M&A activity that could reshape the media landscape [1] Group 3: Insider Activity and Market Sentiment - Insider selling has raised caution, with CFO Spencer Neumann selling 9,248 shares for $751,597 and Director Reed Hastings offloading 390,970 shares worth $32.7 million, reflecting limited conviction at current stock levels [1] - Netflix's stock has a forward P/E of 26x, down from a trailing P/E of 32.49x, suggesting analysts expect earnings acceleration [1] - The analyst target price for Netflix is set at $111.43, indicating a potential upside of 35% from current levels, with 30 out of 44 analysts rating the stock as Buy or Strong Buy [1]

Core Viewpoint - Netflix's stock has underperformed the S&P 500 by approximately 13 percentage points year-to-date, raising concerns about the sustainability of streaming growth [2] Group 1: Financial Performance - Netflix reported a Q3 2025 EPS of $0.59, missing expectations of $0.70, marking a 15.71% shortfall and breaking a streak of earnings beats in 2024 [3] - EPS has declined sequentially from $0.72 in Q2 2025 to $0.59 in Q3 2025, and further to $0.56 in Q1 2026, indicating ongoing operational pressure [3][8] - Despite recent volatility, Netflix achieved a 17.6% year-over-year revenue growth and maintains a profit margin of 24.3% with a return on equity of 42.8% [6] Group 2: Competitive Landscape - NBC has invested over $8 billion in sports rights for 2026 to enhance its Peacock platform, intensifying competition against Netflix and Amazon [4] - Disney continues to expand its streaming portfolio, leveraging its strong IP assets, while Paramount Skydance's increased bid for Warner Bros. Discovery indicates aggressive M&A activity that could alter the competitive landscape [4] Group 3: Insider Activity - Recent insider sales include CFO Spencer Neumann selling 9,248 shares for $751,597 and Director Reed Hastings offloading 390,970 shares worth $32.7 million, reflecting limited conviction among insiders at current stock levels [5] Group 4: Valuation and Analyst Outlook - Netflix's forward P/E ratio has decreased to 26x from a trailing P/E of 32.49x, suggesting analysts anticipate earnings acceleration [7] - The analyst target price for Netflix is $111.43, indicating a potential upside of 35%, with 30 out of 44 analysts rating the stock as Buy or Strong Buy [7]

Core Insights - LVS Advisory's fourth-quarter 2025 investor letter reveals the performance of its portfolios, with the Event-Driven Portfolio appreciating 9.1% and the Growth Portfolio gaining 6.2% [1] - The Event-Driven Portfolio has a 7-year track record aimed at providing stable, uncorrelated returns, while the Growth Portfolio experienced a decline of 8.2% in Q4 after outperforming the S&P 500 in the first three quarters [1] Group 1: Portfolio Performance - The LVS Event-Driven Portfolio was established in 2019 and has consistently provided annual net returns [1] - The Growth Portfolio's performance in Q4 was notably poor, contrasting with its earlier success in the year [1] Group 2: Netflix, Inc. (NASDAQ:NFLX) Insights - Netflix remains the largest investment in LVS Advisory's portfolio, with an 18% weight at the start of Q4, but saw a decline of 21.8% in Q4 due to its $83 billion acquisition of Warner Brother Discovery [3] - As of February 10, 2026, Netflix's stock closed at $82.21, with a one-month return of -7.16% and a 12-month decline of 19.98% [2] - Netflix is ranked 14th among the 30 Most Popular Stocks Among Hedge Funds, with 154 hedge fund portfolios holding its stock at the end of Q3, up from 133 in the previous quarter [4]

Core Insights - Fox Corporation's Tubi has achieved a significant milestone by becoming the first major free streaming platform to reach profitability in Q3 2025, completing its annual profit target [1] - Tubi's success highlights the rapid rise of ad-supported video on demand (AVOD) platforms, challenging the dominance of subscription-based services like Netflix and Disney+ [1] Financial Performance - Tubi's annual revenue grew by over 30%, with Q4 revenue increasing by 8% compared to Q3 [2] - The growth was driven by an 18% increase in total viewing hours and a substantial rise in advertising revenue, contributing to a 26% increase in Fox's overall TV ad revenue for 2025 [2] - Tubi maintained over 100 million monthly active users (MAU) by the end of 2025, with an average streaming time of 1 billion hours per month [2] Market Position - Tubi captured 6.2% of total viewing hours in the U.S. ad-supported streaming market in Q4 2025, surpassing platforms like Netflix's ad tier [3] - In November 2025, Tubi surpassed major subscription platforms like Peacock and HBO Max with a 2.1% share of total streaming hours [4] User Demographics and Content Strategy - Tubi's user base is predominantly composed of millennials and Gen Z, with over 70% of new users from Gen Z [7] - The platform's content strategy includes a mix of original productions and classic shows, appealing to younger audiences and enhancing user retention [8] - Tubi's library consists of over 300,000 titles, including a significant collection of horror films, catering to diverse viewer preferences [8] Competitive Advantages - Tubi's growth is supported by a three-pronged strategy: targeting Gen Z, leveraging Fox's ecosystem, and employing a lightweight content strategy [5][10][12] - The platform's partnership with Fox allows it to access premium sports content, significantly boosting user engagement and attracting male viewers [10][12] - Tubi's low-cost content acquisition model enables it to maximize operational efficiency while maintaining a rich content library [12] Industry Trends - The AVOD market is projected to grow from $174 billion in 2022 to approximately $260 billion by 2025, indicating a shift in consumer preferences towards free streaming options [14] - Economic pressures have led consumers to prioritize cost-effective streaming solutions, with many willing to watch ads for free content [15] - The competitive landscape is evolving, with traditional media companies increasingly investing in free streaming services to capture diverse market segments [23][24] Future Outlook - The U.S. streaming market is expected to transition into a dual-track system, with free and paid platforms coexisting and catering to different audience needs [23] - Tubi aims to enhance its advertising capabilities while expanding its user base, while subscription services like Netflix will focus on high-end content and premium pricing strategies [23][24]

Activist investor Ancora is urging the board of Warner Bros. Discovery to reject the takeover offer by Netflix in favor of a competing bid by Paramount Skydance. https://t.co/djXCSCxo5I ...

Core Viewpoint - Activist investor Ancora Capital has acquired shares in Warner Bros. Discovery and plans to oppose the company's deal with Netflix regarding its production and streaming assets, marking a significant shift in the Hollywood acquisition battle [1][6]. Group 1: Ancora Capital's Position - Ancora Capital holds approximately $200 million in Warner Bros. Discovery and criticizes the board for not adequately negotiating Paramount's competitive offer to acquire all assets, including CNN and TNT [1][6]. - The investor argues that the proposed Netflix-Warner Bros. deal requires shareholders to accept a lower value and take on significant regulatory risks, while Paramount has offered a higher and more certain acquisition price of $30 per share [1][6]. Group 2: Paramount's Offer - Paramount has not increased its offer of $30 per share, which totals $1.084 billion in debt, but emphasizes that its acquisition has a clearer regulatory approval path compared to Netflix's offer of $27.75 per share, totaling $827 billion in debt [2][7]. - Paramount has extended the deadline for its acquisition offer to February 20 to garner more investor support, with analysts suggesting that a higher bid is necessary to restart negotiations with Warner Bros.' board [2][5][8]. Group 3: Warner Bros. Discovery's Strategy - Warner Bros. plans to hold a shareholder vote on the Netflix deal before April [3][7]. - The core of the bidding war revolves around Warner Bros.' plan to spin off its cable assets, which is a key component of the Netflix deal [4][7]. - The Warner Bros. board believes that the Netflix acquisition proposal is superior because it allows investors to retain shares in the independently listed Warner Bros. Discovery [4][7].