Jared Kushner's Firm Exits Paramount Bid for Warner Bros. Discovery Amidst Scrutiny
WASHINGTON — Jared Kushner's private equity firm, Affinity Partners, has withdrawn its financial backing from the controversial hostile takeover bid by Paramount Skydance for Warner Bros. Discovery (WBD). The decision comes following intense scrutiny over Kushner’s involvement and ongoing political complexities surrounding the $108.4 billion proposal.
Affinity Partners was part of a consortium of investors, including sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, aiming to finance Paramount CEO David Ellison's all-cash offer for WBD.
Why Did Kushner's Firm Pull Out?
A spokesperson for Affinity Partners issued a statement on Tuesday, indicating that the investment dynamics had shifted significantly since their initial involvement in October:
“With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity,” an Affinity spokesperson stated. “We continue to believe there is a strong strategic rationale for Paramount’s offer”.
The withdrawal occurred hours after President Donald Trump made fresh comments criticizing CBS News, which is owned by Paramount Global. Kushner's role had already raised significant ethical concerns and questions about potential conflicts of interest, particularly given WBD's ownership of CNN, a frequent target of presidential criticism.
Regulatory Hurdles and WBD Board Concerns
Paramount's bid was designed to bypass national security reviews (CFIUS) by ensuring foreign investors, including Affinity and the Middle Eastern wealth funds, agreed to forgo any governance rights or board representation. However, the WBD board had reportedly expressed persistent concerns regarding the financing structure and the political risks associated with the deal.
News of Affinity's exit coincides with reports that the Warner Bros. Discovery board plans to officially recommend shareholders reject Paramount's offer in favor of the previously accepted deal with Netflix.
What Happens Next?
While Affinity Partners' investment was a relatively small portion of the overall equity needed (reportedly around $200 million), the exit creates a significant optics issue for the Paramount bid.
The majority of the required $40 billion equity is backstopped by a trust associated with Oracle billionaire Larry Ellison, David Ellison's father and a major GOP donor. It is expected that the remaining financial partners will cover the shortfall.
The media acquisition battle continues to be highly volatile, with both the Netflix and Paramount bids facing extensive antitrust scrutiny from the U.S. Justice Department. A final response from the WBD board regarding the Paramount bid is expected in the coming days.
This is a developing story. Check back for updates.