Jared Kushner's private equity firm has announced its decision to withdraw from the consortium backing Paramount Skydance's hostile attempt to acquire Warner Bros. Discovery. In a statement provided to NBC News, a representative for Affinity Partners, the firm led by Kushner, who is also the son-in-law of former President Donald Trump, explained, "With two formidable competitors striving to secure the future of this distinctive American asset, Affinity has chosen to step back from pursuing this opportunity."
The statement further elaborated, "The investment landscape has shifted dramatically since we first became involved last October. Nevertheless, we still hold the view that there is a compelling strategic justification for Paramount's offer."
On December 8, David Ellison, CEO of Paramount Skydance, revealed plans for an unsolicited takeover bid exceeding $108 billion aimed at acquiring all assets of the media giant Warner Bros. Discovery. This announcement came just days after Netflix and Warner Bros. Discovery finalized a separate agreement allowing Netflix to purchase some of Warner's most valuable properties, including the HBO Max streaming service, the HBO network, and Warner Bros. film studios.
In contrast, Paramount's proposal seeks to take over the entire company, bolstered by the financial support of Larry Ellison, David's father and the chairman and majority stakeholder of Oracle. This ambitious bid also includes funding commitments from Kushner's Affinity Partners, along with contributions from Saudi Arabia's Public Investment Fund, the Qatar Investment Authority, and a significant fund based in Abu Dhabi.
The information regarding Kushner's withdrawal from the group supporting Ellison and Paramount Skydance surfaced shortly after various reports indicated that Warner Bros. was preparing to reject Paramount's bid as early as Wednesday.
Earlier that same Tuesday, former President Trump expressed his dissatisfaction with David Ellison via a post on Truth Social. He stated, "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. If they are friends, I’d hate to see my enemies!"
Any potential deal between Warner Bros. and Paramount Skydance will likely face scrutiny from the Justice Department's antitrust division as well as the Federal Trade Commission. As of now, neither Paramount, Warner Bros. Discovery, nor Netflix have responded to requests for comments regarding this situation.
Steve Kopack serves as a senior reporter for NBC News, focusing on business and economic news.
