The private equity firm of Jared Kushner has withdrawn from one of Hollywood’s biggest takeover battles in a serious blow to the ambitious bid by Paramount Skydance Corp. for Warner Bros. Discovery Inc.
Affinity Partners, the investment firm founded by Donald Trump’s son-in-law, pulled its support for Paramount’s $108.4 billion bid for the iconic entertainment studio. The decision was made ahead of Warner Bros. moving to formally spurn the offer in favor of its existing $82.7 billion deal with streaming giant Netflix Inc.
The decision to withdraw wasn’t purely financial. People with knowledge of the matter say Kushner’s involvement attracted lots of unwanted attention, most notably after President Trump suggested he would personally review a deal involving his son-in-law. To say the least, that kind of political scrutiny made for an already complicated transaction.
Affinity Partners Exits Paramount Bid as “Revocable” Funding Sparks Warner Bros. Skepticism
Affinity Partners had committed $200 million to help finance Paramount’s bid, a relatively small piece of the overall financing puzzle, but symbolically important given Kushner’s high-profile connections. The firm had only emerged as a participant this month, though it had been involved in the process since October.
“With two strong competitors bidding to secure the future of this rare American asset, Affinity has decided no longer to pursue the opportunity,” the investment firm said. The company further said it still believes in the strategic rationale of the Paramount offer.
The retreat marks the latest setback in Paramount’s quest to remake entertainment. Warner Bros.’ board is expected to urge shareholders as soon as Wednesday to reject Paramount’s tender offer, according to people familiar with the deliberations. Board members remain convinced the Netflix deal offers better value, more certainty, and superior terms.
The financing structure of Paramount’s bid is the key concern for Warner Bros. The offer is led by David Ellison and backed by a trust that manages his father’s -software billionaire Larry Ellison- wealth.
There, however, is one caveat: It’s a revocable trust, which implies that the assets can be withdrawn at any time. Warner Bros. executives fear they might not have legal recourse if that happens, casting major uncertainty around the deal’s viability.
Netflix and Paramount Fight for the Future of Warner Bros
The stakes couldn’t be higher for the future of Hollywood. Warner Bros. controls some of the biggest film and television archives in the world, and it also counts among the largest studios still regularly releasing theatrical films.
Were Netflix to succeed in buying the company, it would hold astonishing leverage over what content is available to streaming audiences worldwide.
Paramount, by contrast, sees the combination of two legacy Hollywood studios into a powerhouse that would be more competitive with Netflix, Walt Disney Co., and Amazon.com Inc. The company says consolidation is necessary as the industry becomes increasingly dominated by technology giants and their deep pockets.
Both proposals face significant antitrust hurdles-a fact reflected in the multibillion-dollar breakup fees each party has offered. Netflix and Paramount have been lobbying behind the scenes for approval from the Trump administration, knowing full well that regulatory scrutiny will be fierce.
The investors behind Paramount’s bid read like a who’s who of heavyweight Middle Eastern investors: Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and an Abu Dhabi entity little-known outside the region, L’imad Holding Co., are all providing financial backing.
Given those connections, Kushner was a particularly fitting participant. He established Affinity with hundreds of millions of dollars in founding capital from Middle Eastern sovereign wealth funds in 2021.
Netflix Gains Ground in Warner Bros. Battle as Kushner’s Affinity Partners Retreats
Kushner’s departure from the Warner Bros. agreement comes amid turmoil within Affinity Partners.
At the beginning of this week, Bloomberg News reported that the company gave up plans for a hotel complex in Serbia after the indictment of a government official who advocated for its formation. The event underscored the political entanglements that sometimes resulted from Kushner’s business deals.
Meanwhile, as the fight for Warner Bros. continues, Hollywood keeps a close eye on it. The ultimate victor, whichever that will be, will help shape how Hollywood will look in the future and how people will consume their goods in the future. Now it seems Netflix has secured the upper hand, as a deal for Warners’ boards is firmly on the table, despite Paramount’s offer being higher.
A spurning of the Paramount bid all but seems preordained, leaving only two questions: will it raise its bid or walk away, enabling Netflix to complete what would rank as one of history’s largest media mergers?
