The board of Warner Bros. Discovery (NASDAQ:WBD) is expected to recommend that shareholders vote against a $108.4 billion takeover proposal from Paramount Skydance (NASDAQ:PSKY), according to people familiar with the matter.

Sources indicate that the move would reaffirm Warner Bros. Discovery’s preference for an existing transaction with Netflix (NASDAQ:NFLX), marking another development in the competitive battle for high-profile media assets. These include the iconic Warner Bros. film and television studio and its extensive content library, which spans classic titles such as Casablanca and Citizen Kane, as well as globally recognised franchises like Harry Potter and Friends, along with HBO and the HBO Max streaming platform.

A spokesperson for Warner Bros. Discovery declined to comment.

Control of these assets is seen as a significant strategic prize in the intensifying streaming wars, as ownership would provide access to one of the industry’s most valuable and sought-after content catalogs.

Earlier this month, Netflix agreed to a tender offer valued at $27 per share, structured as a mix of cash and stock, for Warner Bros. Discovery’s non-cable television operations. Shortly thereafter, Paramount CEO David Ellison approached Warner Bros. shareholders directly with an all-cash proposal of $30 per share for the entire company.

In regulatory filings, Paramount argued that its offer is superior to Netflix’s proposal and would face fewer regulatory hurdles. The bid is backed by $41 billion in new equity financing from the Ellison family and RedBird Capital, alongside $54 billion in debt commitments provided by Bank of America, Citi and Apollo.

Separately, Bloomberg reported that Affinity Partners, the investment firm founded by Jared Kushner and previously aligned with Paramount on the deal, has withdrawn from the bidding process.

Neither Paramount nor Affinity Partners responded to requests for comment from Reuters.

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