Fiction
Paramount taps Pentwater Capital’s Halbower in push to reshape Warner Bros board
Skydance-backed bid eyes board shake-up to derail Netflix deal and win shareholder support
CALIFORNIA: The battle for control of Warner Bros. Discovery has moved beyond takeover talks and into the boardroom, as Paramount Global and Skydance Media reportedly prepare for a proxy fight. At the center of the push is Pentwater Capital founder Matthew Halbower, whose potential nomination to the board could reshape the outcome of the high-stakes standoff.
Paramount is seeking to block Warner Bros. Discovery’s proposed tie-up with Netflix, arguing that its own $108.4 billion all-cash offer represents a stronger alternative for shareholders. By backing a new slate of directors, the Skydance-backed bidder aims to install leadership more receptive to its proposal — and willing to abandon the Netflix agreement.
As the seventh-largest investor in Warner Bros. Discovery, Halbower wields considerable influence. The Pentwater Capital chief has already voiced sharp criticism of the board, accusing it earlier this year of a “breach of fiduciary duty” for rejecting Paramount’s offer without what he described as adequate engagement.
According to Reuters, Halbower has held discussions with Paramount about a potential board role, though no final decision has been confirmed. He reportedly characterized his candidacy as a last resort, suggesting that if the current board meaningfully negotiates with Paramount, his presence would not be required.
In a bid to strengthen its appeal to shareholders, Paramount Global has enhanced its takeover proposal with added financial safeguards. The revised offer includes a delay-protection clause that would grant shareholders an additional $650 million in cash for every quarter the transaction remains incomplete beyond this year. Paramount has also pledged to absorb the $2.8 billion breakup fee that Warner Bros. Discovery would owe Netflix if it terminates its existing agreement, removing a significant financial obstacle to the deal.
Paramount is not alone in challenging the status quo. Hedge fund Ancora Holdings has also accumulated a stake in Warner Bros. Discovery and publicly opposed the Netflix deal.
With reports suggesting Paramount could nominate enough directors to overturn a majority of the company’s 14-member board, Warner Bros. Discovery’s leadership now faces mounting pressure from influential shareholders. The outcome of this proxy battle will determine whether the media giant proceeds with its streaming partnership or pivots toward a massive cash acquisition.
Fiction
Warner Bros Discovery sees Sachem Head double stake in Q4 filing
Activist fund ups bet as Paramount circles and Netflix deal looms
NEW YORK: Warner Bros Discovery has drawn fresh activist attention, with hedge fund Sachem Head Capital Management more than doubling its stake in the media giant during the fourth quarter, according to a regulatory filing.
The fund, one of 2025’s best performers, said it held nearly 8 million shares in Warner Bros Discovery by the end of December. The position ranks among its ten largest US equity bets, underlining growing investor interest in the company as takeover drama gathers pace.
The move comes at a pivotal moment for the studio and streaming group. Warner Bros Discovery has agreed to sell its streaming and studios business to Netflix, a deal that has stirred interest across the industry and sparked a rival approach from Paramount Skydance.
Paramount has already made a hostile bid that was rejected last month, but it is far from backing down. This week, the company stepped up pressure on Warner Bros Discovery, urging the board to at least consider whether its offer could be made more attractive than Netflix’s proposal.
Paramount has also hinted at a possible boardroom battle, suggesting it could attempt to replace directors. It even floated the idea of bringing in the head of Pentwater Capital Management, one of Warner Bros Discovery’s largest investors, as a potential board candidate.
With a market value of about 70 billion dollars, Warner Bros Discovery now sits at the centre of a high stakes contest between strategic buyers and activist investors. Sachem Head’s increased holding signals that the hedge fund sees opportunity in the turbulence.
The filing also revealed new bets by Sachem Head elsewhere. The fund bought 5.2 million shares in telecoms company EchoStar, and opened fresh positions in used car retailer Carvana and entertainment group Live Nation.
Such filings offer a snapshot of hedge fund portfolios at the end of the previous quarter. While they are backward looking, investors still track them closely for clues on which stocks are gaining favour or becoming targets for change.
