2/26/2026

Ancora Holdings Pushes Warner to Walk Away From Netflix Deal

Wall Street Journal (02/26/26) Thomas, Lauren

Ancora Holdings has built a roughly $200 million stake in Warner Bros. Discovery (WBD) and is planning to oppose Warner’s deal to sell its movie and television studios and HBO Max streaming service to Netflix (NFLX), according to people familiar with the matter. Ancora, which could announce its position as soon as Wednesday, believes that Warner failed to adequately engage with David Ellison’s Paramount Skydance (PSKY) after it made a rival all-cash offer for the entire business, including its cable-network group, at $30 a share, the people said. The arrival of an activist, even with a small stake in the company, will add yet another dose of uncertainty and drama to an already drawn-out fight for the Hollywood studio. Netflix has signed a $72 billion deal, but Paramount, which is bidding nearly $78 billion for the whole company, has gone straight to shareholders and threatened to wage a board fight at the same time. Ancora, a roughly $11 billion fund that has a history of lobbying in the middle of deals, emailed Warner Chief Executive Officer David Zaslav on Tuesday to say that it is considering launching its own proxy fight if Warner’s board doesn’t negotiate the best deal for shareholders with Paramount, the people added. Warner has a market value of roughly $69 billion as of Tuesday, making Ancora’s stake in the company less than 1%. But Ancora plans to continue buying Warner shares, the people familiar with the matter added, and, even with a small stake, it adds a voice that could help rally other investors around opposing the Netflix transaction. Many shareholders remain on the fence over which deal is better and are anticipating the offers could be revised further. A shareholder vote is expected next month. Netflix agreed in December to pay $27.75 a share in cash for Warner’s studios and HBO Max streaming service. That would leave investors also holding shares in Discovery Global, a new company housing Warner’s cable networks, which it plans to spin off later this year. Paramount’s hostile bid for all of Warner Discovery includes its cable-networks unit that includes CNN, TNT, Food Network, and other channels. Warner has consistently rebuffed Paramount’s offer, arguing Netflix’s deal has greater value, more secure financing and a cleaner path to regulatory approval. Paramount on Tuesday enhanced its hostile offer, including agreeing to pay the $2.8 billion termination fee Warner would owe Netflix should that deal collapse. Paramount also said it was adding a “ticking fee” of 25 cents a share, which it would pay to Warner shareholders for each quarter its deal hasn’t closed, starting in January 2027. If Ancora were to proceed with nominating director candidates, it would focus on replacing individuals with ties to Zaslav, the people familiar with the matter said. Ancora has privately questioned the Warner CEO about whether he favored the Netflix deal to obtain an executive role with the streaming company after the transaction closes, they added. Ancora has antitrust concerns about the Netflix deal it calls “uncertain and inferior.” And it questions the Discovery Global spinoff, which would put $17 billion in Warner debt on the company’s cable-TV networks, which have a declining number of viewers, according to a presentation from the investor seen by The Wall Street Journal. In that presentation, Ancora defends Paramount’s viability as a buyer, pointing to the record of Ellison and his father, the billionaire Oracle (NYSE: ORCL) co-founder Larry Ellison. It also said it expects Paramount to receive swift antitrust approval. Many investors and analysts still largely expect Paramount could increase its $30-a-share offer. Analysts at Raymond James said in a recent note to clients that “many WBD shareholders still expect PSKY has not made its best and final offer, and will raise its bid by ~$2-3 per share.” Cleveland-based Ancora has a history of pushing for deals, both publicly and behind the scenes. In 2024, it built a huge stake in Norfolk Southern (NYSE: NSC) and later won seats on the railroad operator’s board before the company agreed to be acquired by Union Pacific (NYSE: UNP) for almost $72 billion. It also recently privately pushed bubble-wrap maker Sealed Air to sell itself, before the business agreed to be bought by CD&R.

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2/20/2026

Jack in the Box, Facing Sardar Biglari, has a Tough Quarter

Restaurant Business (02/20/26) Maze, Jonathan

Jack in the Box’s (NASDAQ: JACK) latest disappointing quarter came at a tough time. The San Diego-based fast-food chain on Wednesday reported that its same-store sales declined 6.7% last quarter, the company’s fiscal first. That was lower than Wall Street expected. “We got off to a tough start to the quarter,” CEO Lance Tucker said. “And while we did experience some bright spots throughout the quarter, the end of the calendar year didn’t improve to the degree we were looking for.” The sales weakness came with the additional problem of rising commodity costs, notably beef. Restaurant-level profit margins were 16.1% in the quarter, down from 23.2% a year ago. “We’re seeing pressure on four-wall EBITDA right now between the sales conditions and then beef inflation, in particular,” Tucker said, referring to earnings before interest, taxes, depreciation and amortization. Executives said that sales in January have shown improvement, both on a one- and a two-year basis. But the combination of disappointing sales and falling profits took a toll on Jack in the Box's stock price, which plunged 16% Friday. The company hardly needs that kind of decline. Jack in the Box's stock has lost more than half of its value since the beginning of last year and is down more than 80% over the past five years. Jack in the Box is currently working to defend its chairman, David Goebel, who is the subject to a “vote no” campaign from investor Sardar Biglari. The investor wants shareholders to vote against Goebel as a message to the company. Earlier in the week, advisory firms that make recommendations on proxy fights split on their recommendations. Institutional Shareholder Services agreed with Jack in the Box. Glass Lewis agreed with Biglari. Jack in the Box's sales challenges have come during a difficult time in the fast-food space, and the chain is hardly alone. Wendy's (NASDAQ: WEN), another big fast-food chain, just reported the worst quarter it's had in at least 20 years. Wingstop (NASDAQ: WING), the chicken wing chain, reported its first yearly same-store sales decline in more than 20 years. Chipotle (NYSE: CMG), Sweetgreen (NYSE: SG) and other chains are facing major questions over their own performance. Jack in the Box is making several changes in a bid to improve its financial and store-level performance. It is closing underperforming locations, believing that doing so will remove weak stores from the system while improving sales at nearby restaurants. It sold Del Taco last year. It is also paying down debt and is assessing refinancing options. Same-store sales so far in the current quarter have improved by at least two percentage points. At least part of that was due to the popularity of the Jibbi, a backpack charm given away with the chain's Munchie Meals, including a Chicken Supreme Munchie Meal celebrating the chain's 75th anniversary. Last week, the chain brought back the popular Hot Mess burger, which was paired with an Antenna Ball featuring a “Meat Riot Jack” head from one of the chain's Jack commercials. “We're not quite where we want to be, but we're certainly gaining on it and we're getting really good initial response to our 75th anniversary marketing,” Tucker said.

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2/19/2026

Amex, Deere, J&J Abandon Board Diversity Rule, Activist Says

Bloomberg (02/19/26) Green, Jeff

American Express Co. (NYSE: AXP), Deere & Co. (NYSE: DE), and Johnson & Johnson (NYSE: JNJ) have dropped diversity criteria for selecting new board directors, according to a conservative shareholder group. Goldman Sachs Group Inc. (NYSE: GS) is considering a similar change, Bloomberg confirmed earlier this week. The moves are the latest ways that pressure from conservatives is changing corporate management and governance. American Express signed an agreement in October with the nonprofit National Legal and Policy Center, a shareholder that opposes DEI programs at companies, according to a letter viewed by Bloomberg News. Deere made changes to its bylaws that came after a shareholder proposal was filed to seek their removal, said Paul Chesser, director of the NLPC’s Corporate Integrity Project. The group opted not to pursue the topic with Johnson & Johnson after the company verified it had already made the change, Chesser said. American Express, Deere, and Johnson & Johnson declined to respond to requests for a comment. The NLPC disclosed the American Express and Deere changes on its web page and provided documents verifying the changes at those companies. “They already see the DEI wave has gone in the opposite direction,” said Chesser. Companies have been rolling back diversity commitments for several years, spurred by a conservative backlash and legal pressure on corporate attempts to even the playing field for traditionally underrepresented groups. President Donald Trump accelerated the shift, as he made the elimination of what he called “illegal DEI” a central goal of his second administration through a series of executive orders. A U.S. federal appellate court this month rejected a challenge to key provisions of those directives. The Equal Employment Opportunity Commission, the federal regulator tasked with policing workplace bias, is urging White men who feel they’ve been discriminated against to come forward and sue their employers. The agency also disclosed in a recent court filing that it’s investigating whether past DEI goals for hiring at Nike Inc. (NYSE: NKE) were illegal. Nike has said it is cooperating with the investigation. American Express agreed to strike language from its criteria for board members mentioning “gender, race, ethnicity, age, sexual orientation and nationality,” according to the copy of the October agreement between American Express and NLPC. In response, NLPC agreed to withdraw its request for a shareholder vote. In the case of farm-equipment maker Deere, board bylaws for selected new directors no longer include a reference to “race, ethnicity, gender, and other types of diversity,” which the NLPC found in a previous version and shared in screen shots. Given the removal of the language, the group has dropped the issue with the company, Chesser said. Goldman is expected to remove race, gender identity, sexual orientation and other diversity factors from the measures its board considers when nominating directors. It’s weighing the change following a request last September from NLPC, a person familiar with the bank’s thinking said, asking not to be identified citing private discussions. The NLPC also approached Johnson & Johnson and Colgate-Palmolive Co. (NYSE: CL) about the use of DEI criteria in board selection, Chesser said. Discussions with Johnson & Johnson determined the health care company’s policy was already changed, while Colgate-Palmolive hasn’t issued a formal response, he said. Colgate currently lists “race, ethnicity, gender, sexual orientation, gender identity and cultural background” among potential director criteria. About 58% of S&P 500 boards in 2025 reported having a policy similar to the National Football League’s so-called Rooney Rule, which includes a commitment to ensuring individuals from diverse groups are in the candidate pool when teams recruit new coaches. That’s the same ratio as in 2024, according to executive recruiter Spencer Stuart. Still, the same report found that only 78% of companies reported their board’s share of underrepresented minorities in 2025, down from 99% in 2024.

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2/18/2026

Elliott Presses LSEG for Portfolio Review, 5 Billion Pound Buyback, Source Says

Reuters (02/18/26) Dey, Bipasha; Conchie, Charlie

Elliott Investment Management is pressing London Stock Exchange Group (LSEG.L) to conduct a full review of its portfolio and launch a 5 billion pound ($6.76 billion) buyback, a person familiar with the matter said on Wednesday. This comes days after Reuters reported that Elliott took a stake in LSEG and started engaging with the company on ways to boost performance. LSEG's shares have dropped more than 30% in the past 12 months, pressured further by a sharp global selloff in software stocks. While Elliott has not made specific requests to LSEG on asset disposals, it sees the group's 51% stake in U.S.-listed Tradeweb Markets (TW.O) as a potential route to generate cash, the person said, adding that the fund considers all of LSEG's portfolio as undervalued. Elliott declined to comment to a request for comment from Reuters, which provides news for LSEG's news and data terminal, Workspace, and other products. An LSEG spokesperson said the company "maintains an active and open dialogue with our investors, while remaining focused on executing our strategy." The investor is pressing LSEG leadership to more effectively communicate that the group cannot be disintermediated by large language models and that AI offers an opportunity rather than a threat to the company, the person said. Engagement between Elliott and LSEG has been constructive so far, the person added.

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2/18/2026

Starboard Presses Riot Platforms to Speed Up AI Data Center Push

Reuters (02/18/26) Srivastava, Prakhar

Starboard Value on Wednesday pressed Riot Platforms (RIOT.O) to speed up AI data center deals, saying the bitcoin miner is well-positioned to capitalize on booming demand for artificial intelligence infrastructure. Shares of Riot rose about 5% in premarket trading. The push underscores a shift among crypto miners, which are looking to use their large power capacity for AI computing as bitcoin mining profits remain volatile and demand for AI data centers grows rapidly. In a letter to Riot CEO Jason Les and Executive Chairman Benjamin Yi, Starboard said AI and high-performance computing companies have increasingly turned to cryptocurrency miners as attractive sources of near-term power capacity for data centers. Riot's shares have underperformed peers that have secured sizable AI/HPC deals, according to the letter. "In such a dynamic and rapidly evolving AI/HPC demand environment, Riot must urgently seize this extraordinary opportunity," Starboard Managing Member Peter Feld said in the letter. Riot did not immediately respond to a request for comment. Starboard, which owns about 12.7 million shares of Riot, said the company's two main Texas sites, Corsicana and Rockdale, are well-positioned to capitalize on that demand. The facilities together offer about 1.7 gigawatts of available power suitable for AI data center use, the letter said. The company should focused on the high-quality, investment-grade tenants, including hyperscalers, rather than simply chasing the highest lease rates, the investor said. Starboard described Riot's recent agreement with Advanced Micro Devices (AMD.O) as a "positive signal," but characterized it as a small proof-of-concept deal. Starboard Value acknowledged steps Riot has taken to improve governance and operating efficiency, including appointing new directors with data center experience and hiring a chief data center officer.

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2/17/2026

ValueAct’s Morfit Announces BlackRock Position, Says Technology Can Make the Company ‘More Powerful’

CNBC Pro (02/17/26) Harring, Alex

ValueAct’s Mason Morfit unveiled a stake in BlackRock (BLK), saying the firm could lead on investment management software. Morfit, the firm’s co-CEO, disclosed the holding for the first time on an episode of “The Master Investor,” a podcast hosted by CNBC contributor Wilfred Frost. Morfit’s revelation comes ahead of the fund’s regulatory filling expected Tuesday. “It was already the apex predator,” Morfit said, according to a transcript shared with CNBC. “But with the ingesting of software DNA into its dinosaur body, it becomes even more and more powerful.” Morfit said BlackRock’s Aladdin platform could help automate investment decisions, factoring in risk and position preferences. That would allow portfolios to be managed “far better and faster and cheaper than a human being could do it,” he said. BlackRock bills Aladdin as a tech platform that brings together the management process via a common data language. The firm notes that Aladdin’s platform can view a whole portfolio across both public and private markets. Such a technology can help BlackRock break free of its reputation as the exchange-traded fund manager that’s been stuck in price war with competitor Vanguard, Morfit said. To be sure, Morfit acknowledged his investing thesis can be viewed as “strange,” given the threat that this technology causes to active managers like himself. But he said there’s “a lot of inefficiencies” in the sector, creating the need for a company to organize and streamline technology in the industry. “BlackRock has historically been viewed, I think as a diversified asset management that's really good at making ETFs,” Morfit said. “But the interesting thing that piqued my attention in the last 12 months was that BlackRock is also one of the best data and software companies in the industry.” BlackRock shares dropped more than 3% in February, putting the stock near its flatline for 2026 following a three-year win streak. Shares have undeformed the broader market recently: BlackRock has gained under 50% over the last three years, while the S&P 500 has added nearly 67%.

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2/17/2026

Genuine Parts to Split Into Industrial and Auto Businesses; Sees Weak FY26 Profit

Reuters (02/17/26) Sarkar, Apratim

Automotive and industrial parts distributor Genuine Parts (GPC.N) will separate into two independent companies, it said on Tuesday, months after a deal with Elliott Investment Management. The move follows a comprehensive strategic and operational review of market opportunities, in-flight initiatives and the company's structure, it said. The separation into two publicly traded companies – Automotive Parts Group and Industrial Parts Group – follows a settlement late last year with shareholder Elliott. Investors have increasingly pushed companies to simplify corporate structures and shed underperforming or non-core divisions, arguing that leaner businesses unlock greater shareholder value. The split, which does not require shareholder approval, is expected to be completed in the first quarter of 2027. Company names, executive teams and the boards for the separated companies would be announced at a later date. Founded in 1928, Genuine Parts now has a market value of roughly $20 billion as its Automotive Parts Group distributes replacement parts around the world, primarily under the NAPA brand name. Its Motion Industries unit supplies advanced engineered components and technical services to manufacturing and industrial customers across the United States. Separately, Genuine Parts forecast full-year 2026 profit below Wall Street estimates. It sees adjusted EPS between $7.50 and $8.00, while analysts expect $8.44, according to data compiled by LSEG. Shares of the Atlanta-based company, fell nearly 6% in premarket trading on Tuesday. Industrial sales for the fourth quarter was up 4.6% at $2.2 billion from a year earlier. High interest rates and elevated household expenses have prompted many U.S. consumers to postpone non-essential vehicle maintenance in the past. Genuine Parts' adjusted profit for the fourth-quarter was $1.55 per share, compared with analysts' average estimate of $1.82 per share. Revenue for the quarter was about $6.01 billion, with estimates of $6.06 billion. Last year, industrial conglomerate Honeywell (HON.O) announced plans to split into three independent companies following pressure from Elliott.

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