Warner Bros. Discovery (WBD) is on the verge of rejecting an amended $108.4 billion hostile takeover bid from Paramount Skydance, despite a personal guarantee from billionaire Larry Ellison backing Paramount’s offer. The WBD board is expected to meet next week to make a final decision, though its current inclination is to pursue a rival cash-and-stock deal with Netflix. Both Warner Bros. and Paramount have refrained from commenting on these internal deliberations.

Paramount’s bid, initially for the entire WBD company including its cable television assets, offered $30 per share in an all-cash deal. Despite earlier rejections, Paramount has amended its offer twice. The most recent revision included Larry Ellison’s personal guarantee of $40.4 billion in equity financing, aimed at alleviating previous doubts regarding financing certainty. Paramount also increased its regulatory reverse termination fee to match Netflix’s and extended its tender offer deadline. Larry Ellison, whose son David is chairman and CEO of Paramount, took control of the company in August and has been actively trying to acquire WBD to scale up Paramount's streaming presence and secure another of Hollywood's original studios.

However, the WBD board remains largely unmoved. Concerns persist over Paramount's failure to increase the financial terms of its offer, which WBD had previously deemed inferior to Netflix’s proposal. The board is also wary that a Paramount deal might restrict WBD’s ability to manage its debt without the Ellisons' approval and that Paramount has not guaranteed coverage for the $2.8 billion breakup fee WBD would owe Netflix if it walks away from that agreement. Warner Bros. has publicly stated that it views the Netflix offer as superior, citing potential heavy indebtedness for Paramount and planned job cuts under its proposal.

Conversely, Netflix’s $82.7 billion offer, while lower in headline value, presents a clearer financing structure and fewer execution risks, according to analysts. The Netflix deal specifically targets WBD’s studio and streaming businesses. Harris Oakmark, WBD's fifth-largest investor, with 96 million shares, has publicly stated that Paramount’s revised offer is