A private equity firm linked to the President’s son-in-law has withdrawn its support for Paramount’s $30-per-share offer for Warner Bros. Discovery, a move that could reshape the battle between the two streaming giants.
The Backing Withdrawn
On Tuesday, Affinity Partners, a private-equity outfit owned by Jared Kushner, confirmed that it would no longer back Paramount’s hostile bid for Warner Bros. Discovery. The firm’s statement read: “”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 said in a statement. The dynamics of the investment have changed significantly since we initially became involved in October. We continue to believe there is a strong strategic rationale for Paramount’s offer.”
The decision removes a key financial pillar that Paramount had hoped to leverage in its attempt to outbid Netflix.
Paramount’s Offer in Context
Paramount’s proposal values each Warner share at $30, a premium over Netflix’s $27.75 per-share bid that was announced in early December when Warner agreed to be acquired by the streaming giant. The offer is aimed directly at Warner’s shareholders, allowing them to tender their shares at the set price and bypass Warner’s top management, which Paramount says never engaged meaningfully with earlier offers.
The bid includes the entire Warner portfolio, encompassing cable networks such as CNN that Netflix excluded from its own proposal. Paramount argues that its offer may face less regulatory scrutiny from the Trump administration, citing concerns the president has voiced about the combined market share of a Warner-Netflix deal.
Financial Backing and Political Ties
While Affinity Partners has stepped back, Paramount’s bid remains supported by wealth funds run by three governments in the Persian Gulf, widely reported as Saudi Arabia, Abu Dhabi and Qatar. Paramount also owns CBS, MTV and the streaming service Paramount+, and is now headed by David Ellison, the son of a major Trump donor. Trump has recently criticized the Ellisons for their treatment of CBS News’ “60 Minutes,” and on Truth Social he said: “”If they are friends, I’d hate to see my enemies!””
The withdrawal of Kushner-owned Affinity’s backing removes a potential advantage for Paramount in courting the President’s approval.
Warner’s Next Steps
Warner Bros. Discovery is reviewing Paramount’s offer and is expected to inform shareholders soon whether the $30-per-share deal is more attractive than selling to Netflix. The studio, one of the “big five” Hollywood studios, owns major properties such as Warner Bros. Pictures, HBO, the DC Comics universe and the Harry Potter franchise.
Key Takeaways
- Affinity Partners, owned by Jared Kushner, has pulled its support for Paramount’s $30-per-share bid for Warner Bros. Discovery.
- Paramount’s offer includes the entire Warner portfolio, including cable networks like CNN, and is aimed directly at shareholders.
- The bid remains backed by wealth funds from Saudi Arabia, Abu Dhabi and Qatar, while Paramount’s leadership includes David Ellison, son of a major Trump donor.
The development underscores the high stakes of the streaming wars and the complex interplay of corporate strategy, political influence and regulatory considerations.
Closing
With the withdrawal of Affinity Partners, Paramount must now rely on its remaining backers and the appeal of its higher offer to persuade Warner shareholders. The outcome of this contest will shape not only the future of two of the industry’s largest studios but also the broader landscape of streaming content and media ownership.
