Warner Bros Discovery will likely reject Paramount Skydance’s amended $108.4 billion hostile bid for the storied Hollywood studio despite a personal guarantee from billionaire Larry Ellison backing the media giant’s offer, according to a person familiar with the matter.

The board has yet to make a final decision, but is expected to meet next week, said the person, who requested anonymity to discuss internal deliberations.

Warner Bros and Paramount declined to comment on the board’s position, reported earlier by CNBC.

The decision could keep Warner Bros on track to pursue a rival cash-and-stock deal with Netflix despite Paramount’s attempt to sweeten its offer.

Ellison, whose son David is chairman and CEO of Paramount, personally guaranteed the equity underpinning the bid, hoping to ease doubts that had dogged its earlier proposal.

The company did not increase its $30-per-share all-cash offer, but it raised its regulatory reverse termination fee to match Netflix and extended its tender offer deadline.

Netflix’s $82.7 billion offer, while lower in headline value, offers a clearer financing structure and fewer execution risks, analysts have said.

Under terms of that agreement, Warner Bros would face a $2.8 billion breakup fee if it walks away from the Netflix deal.

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Harris Oakmark, Warner Bros’ fifth largest investor with 96 million shares, said the revised offer wasn’t “sufficient,” and noted that it was not enough to cover the breakup fee.

Paramount has argued its bid would face fewer regulatory obstacles. A combined Paramount-Warner Bros entity would create a studio larger than industry leader Disney and merge two major television operators.

Warner Bros’ board previously urged shareholders to reject Paramount’s $108.4 billion bid for the entire company, including its cable television assets, citing concerns over financing certainty and the absence of a full guarantee from the Ellison family.

Paramount has argued its offer is more market-proof than Netflix’s $82.7 billion proposal, whose value has fluctuated with Netflix’s share price.

Lawmakers from both parties have raised concerns about further consolidation in the media industry. U.S. President Donald Trump has said he plans to weigh in on the landmark acquisition.

(Reporting by Akash Sriram in Bengaluru; Editing by Dawn Kopecki, Krishna Chandra Eluri, Anil D’Silva and David Gregorio)

WASHINGTON — The Department of Health and Human Services announced on Tuesday that it has frozen all child care payments to the state of Minnesota amid news of a massive fraud scandal in the state.

“We have frozen all child care payments to the state of Minnesota,” Deputy Secretary Jim O’Neill and Administration for Children & Families Assistant Secretary Alex Adams announced in a video released on X Tuesday evening. “You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.”

HHS has taken three actions “against the blatant fraud that appears to be rampant in Minnesota and across the country,” he explained. The first action: activating HHS’ “Defend the Spend system,” requiring justification and a receipt or photo evidence before they send money to a state.

The second action hinges directly on journalist Nick Shirley’s investigative work over the past few months: O’Neill says that he and his colleagues have identified the individuals in Shirley’s video, and are demanding a “comprehensive audit of these centers,” including attendance records, licenses, complaints, investigations, inspections, and more.

HHS said its third action is launching a fraud reporting hotline and email address where parents, providers, and members of the public can submit tips.

“We have turned off the money spigot and we are finding the fraud,” the officials said.

Independent journalist Nick Shirley speaks during a roundtable discussion in the State Dining Room of the White House on October 08, 2025 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

Shirley’s viral videos show a number of examples of concerning activity in the Minneapolis, Minnesota, region. His work comes after a federal prosecutor said that there has been at least $9 billion in fraud in the state under Minnesota Democratic Governor Tim Walz’s watch.

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The Daily Wire reported earlier this month that the Minnesota government was still paying an accused Somali fraudster to run assisted living homes as that man awaited trial for his alleged role in the nation’s largest COVID scam, in which he ran a fraudulent charity.

According to First Assistant U.S. Attorney Joe Thompson, 14 Medicaid services in Minnesota are at “high risk” for fraud.

Shirley, who appeared on Fox News over the weekend, discussed how he found suspicious daycare and learning centers in Minneapolis with no children present that are potentially fronts for scams.

We’ve spent years cracking down on fraud – referring cases to law enforcement, shutting down and auditing high-risk programs.

Trump keeps letting fraudsters out of prison.

To the national news just now paying attention, here’s what we’ve done to stop it. pic.twitter.com/bgvKPxVxxm

— Tim Walz (@Tim_Walz) December 30, 2025