New York, Feb. 27 -- Netflix has declined to raise its offer to acquire Warner Bros. Discovery's studio and streaming business, a move that effectively puts Paramount in a position to take over its Hollywood rival, according to a news report by PBS News.

On Thursday, after Warner's board announced that Skydance-owned Paramount's offer was superior to the agreement it had previously struck with Netflix, the streaming giant said the revised price required to complete the deal was "no longer financially attractive."

"We believe we would have been strong stewards of Warner Bros.' iconic brands," Netflix co-CEOs Ted Sarandos and Greg Peters said in a joint statement. "But this transaction was always a 'nice to have' at the right price, not a...