A private equity firm, managed by Jared Kushner, son-in-law of President Donald Trump, has officially withdrawn its support for Paramount’s aggressive pursuit of Warner Bros. Discovery, as confirmed by the firm on Tuesday.
Following Warner’s agreement to a takeover by Netflix in early December, Paramount initiated a competing bid aimed at appealing directly to Warner’s shareholders with a higher offer, bypassing Warner’s management. Paramount has proposed $30 US per share, compared to Netflix’s $27.75 US per share.
Warner, recognized as one of the “big five” studios in Hollywood, oversees Warner Bros. Pictures, HBO, the DC Comics franchise, and the Harry Potter series. Analysts suggest that the acquisition could significantly boost the winning company’s position and impact the competitive landscape of streaming services, potentially enhancing Netflix’s lead or establishing Paramount as a formidable contender.
Paramount, which operates on a smaller scale than Netflix, stated that its choice to bypass Warner’s executives was prompted by their lack of meaningful engagement with previous proposals from Paramount.
The company disclosed its latest offer publicly and provided Warner shareholders with the ability to tender their shares — allowing them to sell at a predetermined price — to support its bid. Paramount aims to acquire Warner’s complete portfolio, including cable networks like CNN, which Netflix has chosen to exclude from its offer.
Paramount Skydance made a hostile takeover bid for Warner Bros. Discovery for $108 billion US just days after Netflix announced it made a $72-billion US deal with the legacy studio. It’s a move that even has U.S. President Donald Trump weighing in.
In its case to shareholders, Paramount claimed its proposal may face less regulatory scrutiny under the Trump administration.
The president previously remarked that the merger between Warner and Netflix “could be a problem” due to the significant market share of the combined entities.
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Kushner’s choice to withdraw his firm’s financial support diminishes a potential advantage for Paramount in gaining Trump’s favor. The specific contribution from Kushner’s Affinity Partners to the offer was not revealed in Paramount’s recent SEC disclosures.
“With two formidable contenders competing for the future of this distinct American asset, Affinity has opted to cease pursuing this opportunity,” the firm stated. “The investment landscape has evolved considerably since our initial involvement in October. We still believe there is a compelling strategic basis for Paramount’s proposal.”
Paramount’s proposal continues to receive backing from sovereign wealth funds associated with three Gulf nations, reportedly including Saudi Arabia, Abu Dhabi, and Qatar.
Paramount, which owns CBS, MTV, and the streaming platform Paramount+, is now led by David Ellison, the son of prominent Trump supporter, Larry Ellison. However, Trump has recently criticized the Ellisons regarding their treatment by CBS News’s 60 Minutes.
“If they are friends, I’d hate to see my enemies!” Trump expressed on Truth Social on Tuesday.
Warner is currently assessing Paramount’s proposal and is anticipated to inform shareholders shortly whether it presents a better deal than the one with Netflix.
