Warner Bros. Readies Paramount Rejection on Funding, Terms (2)

Warner Bros. Discovery Inc. is planning to reject Paramount Skydance Corp.’s hostile takeover bid due to concerns about financing and other terms, people familiar with the matter said.

After deliberating and reviewing Paramount’s bid, Warner Bros.’ board will urge shareholders to reject the tender offer, said the people, who asked not to be identified discussing confidential information. The board still views the company’s existing agreement with streaming leader Netflix Inc. as offering greater value, certainty and terms than what Paramount has proposed, they said.

Warner Bros.’ response to Paramount’s tender offer could be filed as early as Wednesday, the ...