Hollywood Century's major acquisition battle is stuck in a tug-of-war! Warner Bros. (WBD.US) plans to once again reject Paramount's (PSKY.US) latest proposal.

According to sources familiar with the matter, Warner Brothers is planning to once again reject the revised acquisition offer from Paramount. Earlier, the rival media company had modified its terms of the offer. Sources say that the Warner Brothers board has not made a final decision yet, but will meet next week. One of the concerns of the board is that Paramount has not raised its offer, which Warner Brothers had previously rejected as inferior to the proposal from streaming giant Netflix. Paramount owns the eponymous movie studio and MTV. In an effort to garner support for its proposed acquisition of Warner Brothers (which owns HBO and CNN), Paramount launched a public campaign. On December 8th, Paramount publicly submitted a cash offer of $30 per share, just three days after Warner Brothers had accepted Netflix's deal, which only included the acquisition of Warner Brothers' movie studio and streaming business. Since then, Paramount has revised its offer twice, with the most recent revision including a guarantee from Oracle Corporation founder Larry Ellison that he would personally guarantee $40.4 billion in equity financing and other commitments. Paramount is controlled by Larry Ellison and his son David Ellison, who is a film producer currently building a media empire. The Ellisons acquired control of Paramount in August and have since made multiple acquisition offers to Warner Brothers, aiming to add another Hollywood studio to their relatively small company and gain a larger presence in the streaming industry. Sources say that the Warner Brothers board remains unmoved and is waiting for Paramount to improve the financial terms of their offer. Several shareholders expect Paramount to provide more funds. The board is also concerned that a deal with Paramount could leave Warner Brothers unable to manage its debt without the approval of the Ellisons, and Paramount has not guaranteed to cover the termination fee Warner Brothers would have to pay to Netflix. In public filings, Warner Brothers argued that it believes Netflix's offer is superior to Paramount's for various reasons, including Paramount taking on heavy debt and planning to cut more jobs. Netflix is the highest-valued company in Hollywood, with a market value exceeding $400 billion.