{"id":79745,"date":"2026-01-15T22:18:55","date_gmt":"2026-01-16T01:18:55","guid":{"rendered":"https:\/\/ubirataonline.com.br\/what-a-proxy-battle-for-warner-bros-would-look-like\/"},"modified":"2026-01-15T22:18:55","modified_gmt":"2026-01-16T01:18:55","slug":"what-a-proxy-battle-for-warner-bros-would-look-like","status":"publish","type":"post","link":"https:\/\/ubirataonline.com.br\/en\/what-a-proxy-battle-for-warner-bros-would-look-like\/","title":{"rendered":"What a Proxy Battle for Warner Bros. Would Look Like"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tOn a bright but frigid December morning, David Ellison held court in a makeshift war room in the basement of the UBS building next to Madison Square Park.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tSporting cream-colored slacks and a crisp blue blazer, Ellison and his senior <a href=\"https:\/\/www.hollywoodreporter.com\/t\/paramount\/\" id=\"auto-tag_paramount_1\" data-tag=\"paramount\">Paramount<\/a> leadership team took meeting after meeting with Wall Street heavyweights in a private room in UBS\u2019 subterranean conference center, outlining their strategy to transform Paramount, and to persuade them to back their tender offer for <a href=\"https:\/\/www.hollywoodreporter.com\/t\/warner-bros-discovery\/\" id=\"auto-tag_warner-bros-discovery_1\" data-tag=\"warner-bros-discovery\">Warner Bros. Discovery<\/a>, which days earlier inked a deal to sell itself to <a href=\"https:\/\/www.hollywoodreporter.com\/t\/netflix\/\" id=\"auto-tag_netflix_1\" data-tag=\"netflix\">Netflix<\/a>. Ellison was a \u201cman on a mission,\u201d one attendee tells <em>The Hollywood Reporter<\/em>.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThe CEO is seeking to reshape Paramount, and pry WBD from Netflix in the process, as part of a reimagining of what an entertainment company should be at a time then the industry is being \u201ctechnologically disintermediated,\u201d as one source close to him frames it.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThat makeshift war room in the basement of the UBS building has since escalated into something closer to outright war.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tOn Jan. 12, Paramount <a data-id=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/david-ellison-warner-bros-court-paramount-netflix-1236470908\/\" data-type=\"link\" href=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/david-ellison-warner-bros-court-paramount-netflix-1236470908\/\">sued<\/a> Warners, escalating its fight and seeking an order that would force the company\u2019s board of directors to show its work, betting that bringing that information to light will help its case.\u00a0And Ellison also announced his intent to launch a proxy fight for Warner Bros. should the company continue to not engage.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cThis is an old-fashioned fight for a target. We have seen this sort of thing forever,\u201d says Mario Gabelli, the influential investment manager, and a WBD shareholder. \u201cAs far as the attempt by Paramount to have a proxy fight, why not? It\u2019s all a part of the smoke signals and mechanics of it.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThe public battle \u201csignifies that as the top team, in consultation with the board, they think the stakes are so large that they\u2019ve got to go all in\u201d says Michael Useem, a professor of management at the Wharton School of the University of Pennsylvania. \u201cThe proxy fight threat, it\u2019s not unusual, it happens, it is indicative of the depth of commitment by Ellison to make the best go of it.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tTo be clear, a proxy fight is not yet a sure thing. Paramount is betting that its lawsuit can pry out new data that could sway investors or force WBD to engage, which is its preferable course of action. The suit and proxy threat are simply the logical next step in the process.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThe window for WBD to set its annual meeting opens in about three weeks, and Paramount could nominate a slate of nominees that would force deal talks. If WBD scheduled a special meeting to approve the deal beforehand, Paramount could wage a proxy campaign to vote \u201cno.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tAnd Netflix could still adjust its offer, either by raising the price, or by moving to an all-cash deal, a move that could box Paramount in and force them to reraise themselves.<\/p>\n<div class=\"post-content-image \/\/  \">\n<figure class=\"o-figure   size-large alignnone lrv-u-max-width-100p\" style=\"width:1296px\">\n<div class=\"c-lazy-image  \">\n<div class=\"lrv-a-crop-16x9\" style=\"padding-bottom:calc((730\/1296)*100%);\">\n<p>\t\t\t\t\t\t<img loading=\"lazy\" class=\"c-lazy-image__img lrv-u-background-color-grey-lightest lrv-u-width-100p lrv-u-display-block lrv-u-height-auto\" src=\"https:\/\/www.hollywoodreporter.com\/wp-content\/themes\/vip\/pmc-hollywoodreporter-2021\/assets\/public\/lazyload-fallback.gif\" data-lazy-src=\"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2024\/07\/GettyImages-866307764-1.jpg?w=1296\" alt=\"\" data-lazy-srcset=\"\" data-lazy-sizes=\"\" height=\"730\" width=\"1296\" decoding=\"async\"\/><\/p><\/div>\n<\/p><\/div><figcaption class=\"c-figcaption  lrv-u-padding-tb-025\">\n<p>\t\t\t\t\t<span class=\"a-font-secondary-s lrv-u-margin-r-025\">Mario Gabelli<\/span><\/p>\n<p>\t\t\t\t\t\t\t\t\t<cite class=\"a-font-accent-uppercase-xs lrv-u-color-grey-dark\">Cindy Ord\/Getty Images<\/cite><\/p>\n<\/figcaption><\/figure>\n<\/div>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cFrom my point of view Netflix has to simplify the deal,\u201d Gabelli tells <em>THR<\/em>, adding that as of now he plans to tender around 90 percent of the WBD shares he manages to Paramount, in order to apply pressure on WBD and Netflix. \u201cAt least I can send a signal that I like cash and the timing of the [Paramount] deal.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThere are indications Netflix is listening, and will change its bid in the near future partly in response to those concerns.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cAt the end of the day, there\u2019s a responsibility here to deliver the highest price, the highest value, and the highest and the best certainty of closing to shareholders. That\u2019s it,\u201d someone close to the company says of its thinking. And Paramount still believes that it\u2019s offer is the better one.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tParamount\u2019s effort to steal Warners from Netflix\u2019s grasp has played out publicly, with multiple letters to shareholders, a personal guarantee from Oracle founder Larry Ellison, and dueling appearances on CNBC from RedBird Capital\u2019s Gerry Cardinale (who is backing\u00a0the Paramount bid) and WBD board chair Samuel Di Piazza.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tBut a proxy fight would, if Paramount follows through on its threat, take that public fight to the next level.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tAnd there are reasons to think that if it runs to its conclusion, it could become the most explosive proxy battle in the history of the entertainment business.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tConsider Nelson Peltz\u2019s battle against The Walt Disney Co. in 2024.<\/p>\n<div class=\"post-content-image \/\/  \">\n<figure class=\"o-figure   size-large alignnone lrv-u-max-width-100p\" style=\"width:1296px\">\n<div class=\"c-lazy-image  \">\n<div class=\"lrv-a-crop-16x9\" style=\"padding-bottom:calc((730\/1296)*100%);\">\n<p>\t\t\t\t\t\t<img loading=\"lazy\" class=\"c-lazy-image__img lrv-u-background-color-grey-lightest lrv-u-width-100p lrv-u-display-block lrv-u-height-auto\" src=\"https:\/\/www.hollywoodreporter.com\/wp-content\/themes\/vip\/pmc-hollywoodreporter-2021\/assets\/public\/lazyload-fallback.gif\" data-lazy-src=\"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2024\/03\/Nelson-Peltz-Delivering-Alpha-GettyImages-1170549819-H-2024.jpg?w=1296\" alt=\"\" data-lazy-srcset=\"\" data-lazy-sizes=\"\" height=\"730\" width=\"1296\" decoding=\"async\"\/><\/p><\/div>\n<\/p><\/div><figcaption class=\"c-figcaption  lrv-u-padding-tb-025\">\n<p>\t\t\t\t\t<span class=\"a-font-secondary-s lrv-u-margin-r-025\">Nelson Peltz <\/span><\/p>\n<p>\t\t\t\t\t\t\t\t\t<cite class=\"a-font-accent-uppercase-xs lrv-u-color-grey-dark\">Heidi Gutman\/CNBC\/NBCU Photo Bank\/NBCUniversal\/Getty Images<\/cite><\/p>\n<\/figcaption><\/figure>\n<\/div>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tPeltz, the well-known activist investor, was backed by the billionaire former Marvel executive Ike Perlmutter. Their <a href=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/final-disney-proxy-vote-tally-win-bob-iger-defeat-nelson-peltz-1235865781\/\" data-type=\"link\" data-id=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/final-disney-proxy-vote-tally-win-bob-iger-defeat-nelson-peltz-1235865781\/\">pursuit<\/a> for a couple of Disney board seats forced Disney to reveal a slew of deals: From its billion-dollar investment in Epic Games to its surprise <em>Moana<\/em> sequel, Disney and CEO Bob Iger went all-out to make their case that they were on the right track.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tBut Paramount\u2019s pursuit of Warners is different: It would engulf three of the biggest players in entertainment, with one company, Paramount, pursuing another, WBD, which has a deal with a third, Netflix. The activist is itself a competitor, and the billionaire backing it also happens to be one of the richest people on planet earth, Larry Ellison (currently worth $255 billion).<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tProxy fights have a way of revealing information and shaking friends and enemies out of the woodwork.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tBut they are also extremely expensive, for both the activist and the defending company. Disney spent about $40 million to defend itself from Peltz\u2019s onslaught, while Peltz spent about $25 million, according to filings from both sides of that battle.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cIt\u2019s a tedious business,\u201d one proxy fight veteran says, noting that fights require catching attention of investors through media, solicitations and in-person meetings, which take a lot of time out of the time of senior executives. That was the case at Disney two years ago.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cEverything else gets pushed, all other meetings get called off,\u201d Useem says. \u201cDavid and his top team, maybe the top 10 or 15, are probably spending full time on this and doing nothing else.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThat will mean meetings with investors, and both sides trying to sway the influential shareholder advisory firms like Institutional Shareholder Services (ISS) and Glass-Lewis (though notably ISS\u2019 recommendation failed to make a dent in the Disney fight).<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tBut proxies are also about leveraging and swaying public opinion, and this fight, should it happen, will instantly become one of the most public proxies in history, given the personal interest of President Trump.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tWhile much of the talk around the deal with regards to Trump has been focused on antitrust and regulatory concerns, the President has not been shy about sharing his thoughts publicly too, telling reporters last month that he would be involved in any review of the deal, and suggesting that CNN should find new ownership. He also reposted an article that was critical of Netflix\u2019s deal for Warners.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tShould the corporate dealmaking move to a street fight, there is no doubt that Netflix and Paramount would be looking for whatever levers they could when it comes to the President\u2019s thoughts on the deal. Both companies have hired Ballard Partners, a lobbyist with close ties to the White House, according to public records.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tBut the potential proxy battle could still end up being something of a mirage. The cost, public scrutiny and intense focus it would require are still the backup plan for Ellison.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cThe best outcome for you and for us would be if WBD\u2019s Board would exercise the right it has under the Netflix Agreement to engage with Paramount,\u201d Ellison wrote to shareholders Jan. 12. \u201cIf it does so, we will be open and constructive to secure the best path forward for WBD and each of you.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tBut if they don\u2019t, expect Ellison to ramp things up. It might be the last shot he gets.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cWhen the stakes are very large, companies recognize that this is the moment to act, because if it\u2019s not now, it\u2019s going to never be,\u201d Useem says.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t<em>This story appeared in the Jan. 15 issue of The Hollywood Reporter magazine.\u00a0<a rel=\"noreferrer noopener\" target=\"_blank\" href=\"https:\/\/subscriptions.hollywoodreporter.com\/site\/thr-subscribe\">Click here to subscribe<\/a><\/em>.\u00a0<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/proxy-battle-warner-bros-paramount-netflix-1236473985\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On a bright but frigid December morning, David Ellison held court in a makeshift war room in the basement of the UBS building next to Madison Square Park. Sporting cream-colored slacks and a crisp blue blazer, Ellison and his senior Paramount leadership team took meeting after meeting with Wall Street heavyweights in a private room [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":79746,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAow2JLhCw:productID":"","maa_idioma":"","maa_pais":"","footnotes":""},"categories":[2725],"tags":[6732,14060,14059,10764],"class_list":["post-79745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-europe","tag-battle","tag-bros","tag-proxy","tag-warner"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What a Proxy Battle for Warner Bros. 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