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Warner Bros. Discovery Inc. is expected to turn down Paramount Skydance Corp.’s hostile takeover bid valued at $108.4 billion, according to Bloomberg and Reuters, citing people familiar with the matter.

Concerns over financing terms and deal structure are understood to be central to the company’s reservations. Reuters reported that the Warner Bros Discovery board could formally reject the offer as early as Wednesday and may recommend that shareholders vote against it.

The board is also expected to submit its response to Paramount’s tender offer by Wednesday, Bloomberg said.

Netflix Emerges as Preferred Bidder

Despite Paramount Skydance’s higher valuation, the Warner Bros Discovery board continues to view Netflix’s proposal as the stronger offer, people familiar with the discussions told Bloomberg.

Netflix had made the first move earlier this month with a bid to acquire Warner Bros Discovery, with Paramount Skydance following soon after with a larger, all-cash proposal. If the Paramount offer is rejected, Netflix would retain its buyout bid and gain potential access to Warner Bros Discovery’s renowned film and television studio, along with its vast content library.

That library includes iconic titles such as Casablanca, Citizen Kane, Harry Potter, Friends, and premium assets like HBO and the HBO Max streaming service.

A High-Stakes Battle in the Streaming Wars

The contest to acquire Warner Bros Discovery is seen as pivotal for the future of the streaming landscape. The successful bidder would secure one of the most valuable content libraries in the industry, offering a major competitive edge.

Earlier this month, Netflix reportedly prevailed with a $27 billion cash-and-stock bid for Warner Bros Discovery’s non-cable assets. Paramount CEO David Ellison subsequently approached shareholders directly with a $30-per-share, all-cash offer for the entire company.

Paramount has described its proposal as superior in regulatory filings, arguing that it offers a clearer path to regulatory approval.

Jared Kushner’s Affinity Partners Exits Deal

Jared Kushner’s Affinity Partners has withdrawn from the Paramount Skydance bid, Bloomberg reported. Affinity had been listed as one of the financing partners in Paramount’s $108.4 billion proposal.

Bloomberg cited people familiar with the matter as saying Kushner’s involvement attracted unwanted attention, particularly after President Donald Trump indicated he would personally review the deal.

Following Affinity’s exit, the Paramount bid is now backed by $41 billion in new equity from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi and Apollo.