Activist hedge fund Sachem Head Capital Management increased its stake in Warner Bros Discovery during the fourth quarter, stepping up its exposure as takeover speculation and strategic uncertainty intensify around the media group, according to a report by Reuters.
Regulatory filings show Sachem Head more than doubled its holding to nearly 8 million shares by the end of December, making Warner Bros Discovery one of the fund’s 10 largest US equity positions. The company currently has a market capitalisation of around $70bn.
The move followed Warner Bros Discovery’s agreement to sell its streaming and studios business to Netflix, a transaction that has reshaped the competitive landscape and drawn renewed attention from activists and strategic bidders.
At the same time, Paramount Skydance has continued to pursue Warner Bros Discovery, despite its hostile bid being rejected last month. Paramount has since increased pressure on the board, urging discussions and signalling it could seek to replace directors in a potential proxy contest.
Paramount has also suggested that the head of Pentwater Capital Management, one of Warner Bros Discovery’s largest shareholders, could be a suitable board candidate — underlining the growing role of hedge funds in shaping the company’s future.
Sachem Head, one of 2025’s strongest-performing hedge funds, also disclosed several new positions in its latest filing, including stakes in EchoStar, Carvana and Live Nation Entertainment.
