Dawn Chmielewski | Reuters
Warner Bros Discovery
(WBD.O) will likely reject Paramount Skydance's
(PSKY.O), amended $108.4 billion hostile bid for the storied Hollywood studio despite a personal guarantee from billionaire Larry Ellison backing the media giant's offer, according to a person familiar with the matter.
The board has yet to make a final decision, but is expected to meet next week, said the person, who requested anonymity to discuss internal deliberations.
Warner Bros and Paramount declined to comment on the board's position, reported earlier by CNBC.
The decision could keep Warner Bros on track to pursue a rival cash-and-stock deal with Netflix despite Paramount's attempt to sweeten its offer.
Ellison, whose son David is chairman and CEO of Paramount, personally guaranteed the equity underpinning the bid, hoping to ease doubts that had dogged its earlier proposal.
The company did not increase its $30-per-share all-cash offer, but it raised its regulatory reverse termination fee to match Netflix and extended its tender offer deadline.
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