According to sources familiar with the matter, Warner Bros Discovery has rejected a preliminary takeover proposal from Paramount Skydance, citing the offer price as too low.

These sources, who requested anonymity as the matter has not been made public, indicated that Paramount made an acquisition offer of approximately $20 per share in recent weeks, which was declined by Warner Bros.

They added that Paramount, led by David Ellison, still has multiple options in its pursuit of acquiring Warner Bros, including raising the offer price, communicating directly with shareholders, or seeking additional support through financial partners.

Reports emerged last week that the two companies were in negotiations over a potential deal, but disagreed on pricing, with Paramount potentially planning to make its offer public to shareholders as a way to pressure Warner Bros.

Representatives for both Paramount and Warner Bros declined to comment.

On Friday, Warner Bros shares closed at $17.10 per share, giving the company a market capitalization of $42.3 billion, while Paramount shares traded at $17 per share with a market cap of $18.6 billion.