Warner Bros likely to reject Paramount offer next week despite Larry Ellison's personal guarantee

According to people familiar with the business's thinking, Warner Bros. Discovery Inc. intends to reject a takeover approach from Paramount Skydance Corp. once more after the rival media group changed the conditions of its offer.

The persons, who asked not to be named, stated that the Warner Bros. board has not yet reached a decision but will meet next week to address internal discussions. One of the board's concerns is that Paramount hasn't raised its offer, which Warner Bros. previously turned down because it wasn't as good as one from Netflix Inc.

Larry Ellison and his son, David, a film producer who is currently building a media empire, own Paramount. Since taking over Paramount in August, the Ellisons have made several bids for Warner Bros., which would give their small business access to one of Hollywood's founding studios as well as greater streaming capacity.

Read Also: January Series F&O Setup: Lot size change, seasonality factor and other key triggers

According to the people, the Warner Bros. board is still unconvinced and is waiting for Paramount to improve the conditions of its offer. A number of investors have stated that they anticipate Paramount making a larger financial offer.

The board is also worried that the Paramount transaction will prevent the firm from managing its debt without the Ellisons' consent and that Paramount has not promised to pay Netflix the breakup fee that Warner Bros. would be required to pay.