Jared Kushner's private equity firm has abruptly withdrawn from a high-stakes battle to acquire entertainment behemoth Warner Bros Discovery (WBD), following intense scrutiny of the former White House adviser's involvement.
Key Backer Steps Away From Hostile Bid
Affinity Partners, the firm founded by Donald Trump's son-in-law, was revealed as a crucial financial supporter of a $108.4bn (£86.7bn) hostile bid launched by Paramount Skydance. The aim was to seize control of WBD and scupper its separate $82.7bn agreement to sell major assets—including the iconic Warner Bros movie studios, the HBO cable network, and the HBO Max streaming service—to rival Netflix.
In a statement to Bloomberg News on Tuesday, Affinity confirmed its retreat, saying, "With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity." The firm added it still believed there was a strong strategic rationale for Paramount's offer.
Political Scrutiny and Powerful Funders
The involvement of Kushner, a senior adviser during the Trump administration, had raised significant political eyebrows. Former President Donald Trump has previously indicated he expects to be "involved" as federal regulators scrutinise any major deal for WBD, injecting potential political complexity into the commercial manoeuvring.
While an initial press release named the Ellison family—billionaire controllers of Paramount—and private equity firm RedBird Capital as the bid's backers, a subsequent regulatory filing exposed a broader consortium. This group included Affinity Partners alongside Saudi Arabia's Public Investment Fund and the Qatar Investment Authority.
Trump Distances Himself From Paramount Owners
In a parallel development, President Trump has sought to publicly distance himself from Paramount and the Ellison family, despite being historically viewed as an ally of Larry Ellison, one of the world's wealthiest individuals and father of Paramount Skydance's CEO, David Ellison.
Trump voiced frustration on his Truth Social platform on Tuesday regarding his treatment by Paramount-owned CBS News and its flagship 60 Minutes programme. "For those people that think I am close with the new owners of CBS, please understand that 60 Minutes has treated me far worse since the so-called 'takeover,' than they have ever treated me before," he wrote. "If they are friends, I’d hate to see my enemies!"
Warner Bros Discovery, which owns a vast portfolio including CNN and the Discovery Channel, has stated it will "carefully review and consider" Paramount's unsolicited offer. The company is expected to issue a formal response and advise its shareholders in the coming days. Affinity Partners did not immediately respond to a request for comment from the Guardian.
