Jared Kushner's Investment Firm Backs Out of Warner Bros. Discovery Acquisition Bid
Jared Kushner's investment firm, Affinity Partners, has withdrawn its support for Paramount Skydance's acquisition bid for Warner Bros. Discovery, Variety has confirmed. This decision comes as two strong competitors vie for the future of this unique American asset.
In a statement to Bloomberg, Affinity Partners explained, 'With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity. We continue to believe there is a strong strategic rationale for Paramount's offer.'
Kushner's firm was one of the key backers of Paramount's $30 per share bid for Warner Bros. Discovery. The bid was also supported by sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, which had previously raised concerns about a potential national security review by the U.S. government due to the involvement of foreign investors.
Paramount's chairman and CEO, David Ellison, has launched a hostile takeover attempt for the entirety of Warner Bros. Discovery. This move came after Netflix secured a deal with Warner Bros. Discovery to acquire the Warner Bros. studios and HBO Max for $82.7 billion.
In prior communications, WBD's board had expressed concerns about Paramount's bid, which was backed by the Arab wealth funds and Kushner's Affinity. As a result, Paramount agreed to forgo any governance rights, including board representation, associated with their non-voting equity investments.
Now, with Affinity Partners no longer part of the bid, Warner Bros. Discovery's board is reviewing the latest Paramount offer. It is expected that the company will reject the $30 per share offer, leaving the future of the acquisition bid uncertain. The question remains whether the Ellisons and their remaining financing partners will return with a higher bid, and if so, whether Netflix will make a counteroffer.
This development comes amidst a heated political climate, with President Donald Trump's daughter, Ivanka Trump, married to Kushner. Trump has publicly criticized the Ellisons, stating, 'If they are friends, I’d hate to see my enemies!'
