Warner Bros Discovery board rejects rival bid from Paramount

Warner Bros Discovery's (WBD.O), opens new tab board spurned Paramount Skydance's (PSKY.O), opens new tab $108.4 billion hostile takeover bid on Wednesday, calling the offer "illusory" as it accused the studio giant of misleading shareholders about its financing.

Paramount has been in a race with Netflix to win control of Warner Bros, and with it, its prized film and television studios, HBO Max streaming service and franchises like "Harry Potter." After Warner Bros accepted the streaming giant's offer, Paramount launched a hostile offer to outdo that bid.

In a letter to shareholders on Wednesday, the Warner Bros board wrote that Paramount had "consistently misled" Warner Bros shareholders that its $30-per-share cash offer was fully guaranteed, or "backstopped," by the Ellison family, led by billionaire and Oracle (ORCL.N), opens new tab co-founder Larry Ellison.