Dec 16 (Reuters) - Warner Bros Discovery's board could announce a decision as early as Wednesday on Paramount Skydance's $108.4 billion takeover bid, with the board likely to advise shareholders to vote against the offer, according to sources familiar with the matter.

The decision to recommit to Netflix's buyout offer would mark the latest twist in the race for assets that include Warner Bros' storied film and TV studio, and its extensive film and television library, whose portfolio includes classics ranging from "Casablanca" and "Citizen Kane" to contemporary favorites like "Harry Potter" and "Friends," HBO and the HBO Max streaming service.

A Warner Bros Discovery spokesman declined to comment.

Warner Bros Discovery shares fell 1.2% in extended trading, while Netflix shares rose 1.5%.

The winner will gain a big advantage in the streaming wars by locking up a deep content library that has long been an acquisition target.

Netflix earlier this month emerged victorious with a $27 cash-and-stock bid for Warner Bros' non-cable assets.

Paramount CEO David Ellison then went directly to Warner Bros' shareholders with a $30-a-share, all-cash bid for the whole company.

In regulatory filings, Paramount has said its bid is superior to Netflix's offer and would enjoy a clearer path to regulatory approval. Its offer is financed by $41 billion in new equity, which is backed by the Ellison family and RedBird Capital, and $54 billion of debt commitments from Bank of America, Citi and Apollo.

Jared Kushner's Affinity Partners, which was one of Paramount's financing partners, is exiting the battle, according to Bloomberg.

Paramount and Affinity Partners did not immediately respond to Reuters' request for comment.