Jared Kushner's private equity firm has withdrawn from a high-stakes battle to acquire media titan Warner Bros Discovery (WBD), following intense scrutiny of the former White House adviser's involvement.
The Deal and the Key Players
Affinity Partners, the firm established by Donald Trump's son-in-law, was a crucial financial backer for a $108.4bn hostile bid launched by Paramount Skydance. This audacious move aimed to wrest control of WBD and scupper its pre-existing $82.7bn agreement to sell major assets—including the legendary Warner Bros movie studios, the HBO cable network, and the HBO Max streaming service—to rival Netflix.
The bid was publicly championed by the Ellison family, who control Paramount, and private equity group RedBird Capital. However, a subsequent regulatory filing unveiled a consortium of external funders, notably Affinity Partners alongside the sovereign wealth funds of Saudi Arabia and Qatar.
Scrutiny and Strategic Withdrawal
The revelation of Kushner's role raised significant questions, particularly given former President Donald Trump's stated expectation to be "involved" as federal regulators examine any potential deal for WBD. In a statement to Bloomberg News on Tuesday, Affinity Partners announced its exit from the fray.
"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. It reiterated its belief in the "strong strategic rationale" for Paramount's offer.
WBD, which owns a vast portfolio including CNN and the Discovery Channel, has committed to a careful review of the unsolicited proposal. The company is expected to issue a formal response and advise its shareholders in the coming days.
Political Tensions and Media Dynamics
The proposed takeover has unfolded against a backdrop of complex political and media relationships. President Trump has recently sought to distance himself from Paramount and the Ellison family, despite being historically viewed as an ally of Larry Ellison, the billionaire father of Paramount Skydance's CEO.
Trump's frustration has been directed at CBS News, owned by Paramount, and its flagship programme 60 Minutes. On his Truth Social platform, the President complained about his treatment, writing, "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'... If they are friends, I’d hate to see my enemies!"
The withdrawal of Affinity Partners marks a significant shift in one of the most contentious and valuable media takeover battles in recent years, leaving the path clearer for the existing WBD-Netflix deal or a continued fight by Paramount alone.
