Warner Bros plans to reject Paramount bid for Netflix’s smaller offer

Warner Bros. Discovery Inc. is planning to reject Paramount Skydance Corp.’s hostile takeover bid due to concerns about financing and other terms, people familiar with the matter said.

One major sticking point is Warner Bros.’ concern about financing proposed by Paramount, which is led by billionaire Larry Ellison's son David Ellison. (Bloomberg)

After deliberating and reviewing Paramount’s bid, Warner Bros.’ board will urge shareholders to reject the tender offer, said the people, who asked not to be identified discussing confidential information. The board of directors still views the company’s existing agreement with streaming leader Netflix Inc. as offering greater value, certainty and terms than what Paramount has proposed.