Netflix Inc. has forged ahead of Paramount Skydance Corp. in bid for Warner Bros. Discovery Inc.

Warner Bros. Discovery’s board of directors rejected Paramount’s $108.4 billion hostile takeover bid Dec. 17. The Burbank-based legacy film studio’s board called Paramount’s offer “inadequate” and “illusory” – even said it “poses significant risk” to its shareholders. The board raised questions about Paramount Chief Executive David Ellison and his billionaire father Larry Ellison’s commitment to back the deal. The latest Paramount offer includes a $40.65 billion equity funding, which would come from a revocable trust fund.

In a letter to shareholders, the board pointed out that assets could be taken out of the “unknown and opaque” trust fund at any point, in which case Warner Bros. Discovery will have no recourse.

“This offer once again fails to address key concerns that we have consistently communicated to Paramount,” said Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery board of directors. “We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination.”

In the letter, Warner Bros. Discovery board called out the dozens of calls and meetings with Paramount, including four in-person meetings and meals between Warner Bros. Discovery Chief Executive David Zaslav and the Ellisons. Paramount was given “multiple opportunities” to offer a superior proposal but never did.

“PSKY has consistently misled (Warner Bros. Discovery) shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family. It does not, and never has,” the board wrote.

Warner Bros. Discovery also raised concerns about the timeline. It could take a year or more to jump over regulatory hurdles, and the time-consuming process could impact business operations. Bloomberg News reported that Paramount is not giving Warner Bros. Discovery enough flexibility to manage its business or its balance sheet.

Ellison, however, isn’t giving up easily and plans to “move forward” in presenting his offer.

“Our proposal clearly offers (Warner Bros. Discovery) shareholders superior value and certainty, a clear path to close, and does not leave them with a heavily indebted sub-scale linear business,” Ellison said in a statement. He added that he’s “encouraged by the feedback” his company has received from some Warner Bros. shareholders and this his proposal “is in the best interest of (Warner Bros. Discovery) shareholders, consumers, and the creative industries.”

Ellison has previously presented six offers to acquire Warner Bros. Discovery. Paramount said the company has refused to engage in any negotiating session or provide mark-ups of transaction documents since the first offer was made in September. Jared Kushner’s investment fund Affinity Partners under A Fin Management also backed out of the deal, CBS News reported.

“With ​two ​strong competitors ​vying to secure ​the future ​of this ​unique American ​asset, ​Affinity ​has ​decided no longer to pursue ​the opportunity,” said an Affinity spokesperson in a statement. “The dynamics ​of the investment have changed significantly ​since we initially became ​involved ​in October.”

Netflix’s stock has declined by 0.6% to close at $94 a share Dec. 18 since the announcement, while Warner Bros. Discovery’s dropped by 4% to close at $27.61. Paramount’s stock also dropped by 6% to close at $13.01.

The battle rolls on

Ellison has been determined to close the deal since his company issued in September an unsolicited offer to buy Warner Bros. Discovery at $19 a share. That price has since climbed to $30 a share for its entire business in his latest all-cash hostile bid to take the deal from Netflix, and Paramount has indicated that’s not the final price it’s willing to pay.

Netflix, on the other hand, offered $27.75 a share for Warner Bros. Studios’ streaming and studio division, totaling $72 billion in equity value. The global networks division would be separated into a publicly traded division named Discovery Global next year. The offer gives Warner Bros. Discovery shareholders $23.25 in cash, $4.5 in shares of Netflix common stock and retained equity in Discovery Global, valued at approximately $3 to $4 per share by analysts. That would put Netflix’s offer just over $30 per share, outbidding Paramount.

Some Warner Bros. Discovery shareholders have been in talks with the hedge fund Standard General about acquiring all or part of Warner Bros. Discovery’s network assets including CNN, the Financial Times reported, citing people familiar with the matter.

Hollywood’s future

Many within the industry voiced concerns over the deal, from iconic actors like Jane Fonda to “The Office” producer Mike Schur. Some worried over Netflix’s proposed shortening of the exclusive theatrical release windows, which Co-Chief Executive Ted Sarandos previously criticized as not “consumer friendly.” He has apparently changed his mind.

“Netflix and Warner Bros. complement each other, and we’re excited to combine our strengths with their theatrical film division, world-class television studio, and the iconic HBO brand, which will continue to focus on prestige television,” Sarandos said in a statement. “We’re also fully committed to releasing Warner Bros. films in theaters, with a traditional window, so audiences everywhere can enjoy them on the big screen.”

Sarandos and Co-Chief Executive Greg Peters also addressed concerns about “the end of Hollywood” in a memo to Netflix staff, which was filed with the U.S. Securities and Exchange Commission. “This deal is about growth: Warner Bros. brings businesses and capabilities we don’t have, so there’s no overlap or studio closures,” the two wrote. “We see this as a win for the entertainment industry, not the end of it.”