Stocktwits sentiment for Warner Bros Discovery's stock was 'bearish' late Sunday, as retail users discussed the possibility of a bidding war as the media giant rejected Paramount Skydance's $20 per share takeover bid.

Bloomberg reported the development on Saturday based on information from unnamed sources. Paramount, led by David Ellison, now has options, including boosting its bid, going directly to shareholders, or finding additional backing through a financial partner, the report said.

WBD shares surged more than 50% over two sessions last month following initial reports of the deal talks. The stock has since slipped, falling 10% in the past week, with retail investor sentiment remaining 'bearish.'

"$WBD hostile takeover bid incoming," said one user, amid a discussion on potential outcomes.

Some users said WBD should accept the deal if Paramount raises its offer to $24 per share, while others argued the company should delay any sale and focus on reviving its fortunes through the planned split into two separate entities.

WBD announced in June that it will demerge Warner Bros and Discovery, dividing its streaming and studios units from cable TV operations into two publicly listed companies by mid next year.

Warner Bros. Discovery owns HBO, CNN, TBS, Food Network, HGTV, and the prolific Warner Bros. movie and television studio.

"I am Glad to see initial offer having been made and rejected. Now we know discussions are happening and should see volume finally," said one user, adding that he expected the initial offer to be higher than $20.

At a recent conference, Ellison advocated for media mergers, stating that his company would have an easier time than others in getting mergers approved by regulators in Washington.

Warner Bros' stock is up 62% year-to-date, significantly outpacing gains notched by benchmark S & P 500 and Nasdaq indices..

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