The Warner Bros Discovery board may announce a decision on the $108.4 billion acquisition offer from Paramount Skydance for the Hollywood giant as early as this Wednesday, according to media reports.

Citing people familiar with the matter, reports indicate that the board is preparing to recommend that shareholders reject the Paramount offer and support an existing agreement with the streaming giant Netflix.

Warner's shares fell more than 1% in pre-market trading in the U.S., while Paramount's shares dipped slightly. Netflix, on the other hand, rose 1.6%.

Earlier this month, Netflix appeared to have won a dispute with Paramount and Comcast, agreeing to pay $27.75 per share in cash and stock for Warner Bros studios and the HBO Max streaming service. Days later, Paramount presented Warner Bros shareholders with a $30 per share all-cash offer for the entire company.

If the Warner Bros board advises shareholders to vote against the offer, Paramount and its CEO David Ellison would be in a position to potentially improve the proposal for the owner of a wide selection of popular properties like "Game of Thrones" and "Friends." Reports indicate that Paramount could wait until its public offer expires on January 8 to present an improved proposal.

Warner Bros has expressed private concerns about the financing structure of Paramount's proposal, which would include support from a fund owned by David Ellison's father, billionaire Larry Ellison, according to the Wall Street Journal.

A private equity firm overseen by Jared Kushner, son-in-law of President Donald Trump, was also initially scheduled as a capital investor in Paramount's offer, although this firm announced on Tuesday that it is no longer involved.

Trump's role in the drama surrounding Warner Bros continues to be a key source of uncertainty. Antitrust regulators would need to approve $BTC $BNB .