Warner Bros. Discovery To Reportedly Expand Board Membership At Behest Of Activist Investor: Retail Watches With Caution
Sessa Capital, a hedge fund that has built a 1% stake in the company, has sought expansion of the board and expediting restructuring initiatives.
FollowWarner Bros. Discovery, Inc. (WBD) could be in the spotlight after a report said the media conglomerate has buckled under pressure from an activist investor.
The New York, based company will add Anton Levy to its board of directors at the behest of activist investor Sessa Capital, the Wall Street Journal reported late Monday.
Sessa Capital is a hedge fund that has built a 1% stake in Warner Bros. Discovery. The fund has been in discussions with the company regarding the addition of new board members and expedite restructuring in order to facilitate a sale of its cable TV business, the report said.
Levy recently stepped down as co-president of private-equity firm General Atlantic, although he continues to serve the firm at an advisory level.
With Levy’s addition, the board will boast of 14 directors.
In December, Warner Bros. Discovery announced board authorization for implementing a new corporate structure that involved creation of two operating divisions, namely global linear networks and streaming studios.
The action aimed to enhance strategic flexibility and create potential opportunities to unlock additional shareholder value.
The move is believed to have been precipitated by the losses incurred by the linear TV business and the increased investment needs of the streaming business.
Citing people familiar with the action, the Journal said the restructuring has now been completed.
The company reported in late February fourth-quarter results that trailed expectations, However, the stock reacted positively to upbeat commentary about its streaming business, comprising Max and Discovery+ services.
It expects the strong DTC subscriber growth to continue throughout 2025, with a clear path to reach at least 150 million global subscribers by the end of 2026.
On Stocktwits, retail sentiment toward Warner Bros. Discovery stock remained ‘neutral’ (48/100) and the message volume improved to ‘high’ levels.
WBD sentiment and message volume as of 2:54 a.m. ET, April 1 | source: Stocktwits
A bullish watcher touted it as a “tariff-resistance” stock.
Another user said an announcement concerning the reorganization could lift the stock.
Warner Bros. Discovery stock ended Monday’s session up 3.47% at $10.73 and it is up 1.5% for the year-to-date period.
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