Jared Kushner’s private equity firm, Affinity Partners, has announced its withdrawal from the consortium of investors backing Paramount Skydance’s aggressive takeover bid for Warner Bros. Discovery. A spokesperson for the firm indicated that the decision was influenced by the evolving competitive landscape surrounding the media giant.
“We continue to believe there is a strong strategic rationale for Paramount’s offer,” the spokesperson said, referencing the significant changes that have impacted their involvement since they joined the initiative in October.
The backdrop to this development involves Paramount Skydance’s CEO, David Ellison, who made headlines on December 8 by proposing an unsolicited takeover that exceeds $108 billion. This bid aims to acquire all of Warner Bros. Discovery’s assets, contrasting with a separate deal between Netflix and Warner Bros. Discovery that focuses on key assets like the HBO Max streaming service, HBO network, and Warner Bros. film studios.
Ellison’s takeover attempt is underpinned by significant financial backing, notably from his father, Larry Ellison, who chairs and is the majority shareholder of Oracle. The proposal also featured commitments from various high-profile investors, including Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and a prominent Abu Dhabi-based fund.
The announcement of Kushner’s firm stepping back comes amid reports that Warner Bros. Discovery is poised to reject the Paramount bid. Warner Bros. Discovery has refrained from commenting on the ongoing turmoil surrounding the potential deal.
On the political side, former President Donald Trump recently shared his frustrations regarding Ellison through a post on Truth Social, criticizing the treatment he received from CBS’s 60 Minutes post-acquisition.
Should a deal materialize between Warner Bros. Discovery and Paramount Skydance, it will likely face thorough scrutiny from the Justice Department’s antitrust division and the Federal Trade Commission. As of now, neither Paramount nor Netflix have provided comments in response to the unfolding events.
