The Hollywood Century takeover is in a tug-of-war! Warner Bros. (WBD.US) plans to once again reject Paramount (PSKY.US)'s latest plan

The Zhitong Finance App learned that, according to people familiar with the matter, Warner Bros. Exploration (WBD.US) plans to once again reject Paramount (PSKY.US)'s revised takeover offer. Previously, the rival media company revised the terms of its offer.

People familiar with the matter said that the Warner Bros. board of directors has yet to make a final decision but will meet next week. One of the board's concerns is that Paramount has yet to raise the offer, which Warner Bros. had previously rejected, arguing that it was inferior to the plan proposed by streaming giant Netflix (NFLX.US).

Paramount owns the film studio of the same name and MTV. To gain support for its proposal to acquire Warner Brothers (which owns HBO and CNN), Paramount launched a public campaign. On December 8, Paramount publicly submitted a cash offer of $30 per share, and just three days ago, Warner Bros. had just accepted Netflix's deal to buy only Warner Bros.'s studio and streaming business. Since then, Paramount has revised its offer twice, most recently including a guarantee from Oracle founder Larry Ellison that he will personally guarantee $404 billion in equity financing and other commitments.

Paramount is controlled by Larry Ellison and his son David Ellison, a filmmaker who is currently forming a media empire. Ellison and his son took control of Paramount in August and have since submitted multiple takeover offers to Warner Bros. to add another established Hollywood studio to their small company and gain more scale in the streaming media space.

People familiar with the matter said that the Warner Bros. board of directors is still unmoved and is waiting for Paramount to increase the financial terms in its offer. A number of shareholders said they expected more funding from Paramount. The board is also concerned that the deal with Paramount will cause Warner Brothers to be unable to manage their debts without the approval of Ellison's father and son, and that Paramount has yet to guarantee that it will bear the cancellation fee that Warner Brothers must pay to Netflix.

Warner Brothers argued in a public filing that it believes Netflix's offer is superior to Paramount for a number of reasons, including Paramount being heavily indebted and planning to cut more jobs. Netflix is the company with the highest market capitalization in Hollywood, with a market capitalization of over $400 billion.