Paramount's mega-bid hits a wall at Warner Bros

Warner Bros Discovery is likely to reject Paramount-Skydance's amended $108.4 billion hostile bid for the storied Hollywood studio, despite a personal guarantee from billionaire Larry Ellison backing the offer, according to a person familiar with the matter.

The board has not reached a final decision but is expected to meet next week, the person said, requesting anonymity to discuss internal deliberations. Warner Bros Discovery and Paramount declined to comment on the board's position, which was earlier reported by CNBC.

The move would keep Warner Bros on course to pursue a rival cash-and-stock deal with Netflix, despite Paramount's effort to sweeten its proposal. Ellison, whose son David is Paramount's chairman and chief executive, personally guaranteed the equity supporting the bid.

Paramount did not raise its $30-per-share all-cash offer, but it increased its regulatory reverse termination fee to match Netflix's and extended its tender-offer deadline. Analysts say Netflix's $82.7 billion bid, although lower in headline value, carries clearer financing and fewer execution risks.

Under that agreement, Warner Bros would face a $2.8 billion breakup fee if it walked away from the Netflix deal. Harris Oakmark, the company's fifth-largest investor with 96 million shares, said the revised Paramount offer was not "sufficient" and did not cover that cost.

Paramount argues its bid would face fewer regulatory hurdles. A merger of Paramount and Warner Bros would create a studio larger than Disney and combine two major US television operators, significantly reshaping the entertainment landscape.

Warner Bros' board has previously urged shareholders to reject Paramount's $108.4 billion proposal, citing concerns over financing certainty and the lack of a full Ellison-family guarantee. Paramount says its bid is more market-proof than Netflix's offer, whose value fluctuates with the streaming giant's share price.