Kushner’s Affinity exits Paramount bid as WBD board leans toward rejecting $30/share offer
Jared Kushner’s Affinity Partners has withdrawn from Paramount Skydance’s $30-per-share cash bid for Warner Bros. Discovery, leaving the offer largely financed by sovereign wealth funds (including Saudi PIF, Abu Dhabi’s L’imad and Qatar’s QIA) and structured so outside backers forgo governance while the Ellison family and RedBird would control the combined company. WBD’s board is leaning toward rejecting the Paramount bid—seen as financially inferior to Netflix’s roughly $83 billion proposal that would carve out CNN—and the contest faces heightened political and regulatory scrutiny ahead of an imminent legal deadline.
📌 Key Facts
- Affinity Partners (Jared Kushner’s fund) has withdrawn from Paramount’s bid for Warner Bros. Discovery; the exit was confirmed on the record and Affinity said changed investment dynamics since October prompted the decision while reiterating support for Paramount’s strategic rationale.
- Warner Bros. Discovery’s board is expected to reject Paramount’s $30-per-share all-cash offer and has a short legal window to respond (reported as 10 days in filings and with a Dec. 22 legal deadline cited); WBD sources say Netflix’s competing bid is financially superior.
- Paramount Skydance’s financing package totaled about $40B of equity commitments, with roughly 60% coming from sovereign wealth funds (Saudi PIF, Abu Dhabi’s L’imad, Qatar’s QIA); outside investors agreed to forgo governance rights and board seats while the Ellison family and RedBird would control governance.
- Later versions of Paramount’s deal had the Ellison family backstopping the full $40.7B in equity commitments — including via Oracle stock — but Oracle shares were reported to be roughly 45% below their September high, raising questions about the backstop’s market value.
- Paramount executives say Warner "never engaged meaningfully" with six separate proposals from Paramount/Skydance.
- Paramount Skydance’s tender offer is scheduled to expire Jan. 8, 2026 unless extended.
- Netflix’s competing agreement is reported at about $83B for Warner’s streaming and studio assets and would carve out/spin off CNN and other cable networks (to be organized as a separate Discovery Global); Netflix’s co‑CEOs said the company would continue theatrical releases and expects to win regulatory approval.
- The bids are drawing heightened political and regulatory scrutiny: President Trump has publicly commented he may be involved in the approval process and said the Netflix–WBD deal "could be a problem" (and suggested CNN should be sold); Sen. Elizabeth Warren warned about streaming market concentration; Rep. Ayanna Pressley raised data‑privacy and democracy concerns about foreign financing; analysts (e.g., MoffettNathanson) say U.S. and European regulators will focus on production-market power and streaming market share.
- Background context noted in reporting includes the Ellison family’s political ties and earlier payouts (reported $16 million related to a Trump lawsuit settlement connected to prior ownership) and recent conservative leadership changes at some news outlets — details reporters say could affect regulatory and political optics around the competing bids.
📊 Relevant Data
Saudi Arabia's Public Investment Fund has invested around $170 billion in the American economy since 2017.
How the US grows from PIF's pioneering investments — Public Investment Fund
In 2025, an investor group led by Saudi Arabia's Public Investment Fund agreed to buy videogame developer Electronic Arts in a $55 billion deal.
Hollywood-hungry Gulf states bankroll Paramount's Warner Bros bid — Reuters
The Qatar Investment Authority plans $500 billion over the next decade for U.S. investments.
Hollywood-hungry Gulf states bankroll Paramount's Warner Bros bid — Reuters
Saudi Arabia's investment in Twitter increased its influence in Silicon Valley and was used to shut down critics at home.
Money talks: the deep ties between Twitter and Saudi Arabia — The Guardian
The Qatar Investment Authority acquired a passive minority stake in Monumental Sports & Entertainment, parent company of the Washington Wizards and Capitals, in a $4.05 billion deal in 2023.
Qatari Wealth Fund Buying Into Wizards Parent in $4.05B Deal — Sportico
📊 Analysis & Commentary (2)
"An opinion piece arguing that the proposed Netflix acquisition of Warner Bros. (the subject of competing bids and political scrutiny) would likely benefit consumers by enabling innovation, bundling efficiencies, and broader competition once the market is properly defined."
"An opinion piece critiquing and contextualizing the Netflix–Warner Bros. Discovery sale and Paramount’s hostile counterbid, arguing the bids’ structure (esp. treatment of cable assets like CNN), financing and political attention make the deals economically dubious and likely to face intense regulatory and political pushback."
📰 Sources (7)
- Affinity Partners gave an on‑the‑record statement explaining its exit, citing changed investment dynamics since October and reiterating strategic rationale for Paramount’s offer.
- Paramount Skydance’s regulatory filing names Saudi Arabia’s Public Investment Fund and Qatar Investment Authority as outside financing partners.
- The filing says outside investors agreed to forgo governance rights, including board seats, in any combined firm.
- Paramount Skydance’s tender offer is set to expire Jan. 8, 2026, unless extended.
- Netflix’s agreement to buy parts of Warner Bros. Discovery includes the film studio and HBO Max, contingent on WBD spinning off its cable networks as Discovery Global, targeted for Q3 2026.
- President Trump said he plans to be involved in the approval process and that the size of the Netflix–WBD deal "could be a problem."
- Rep. Ayanna Pressley raised data‑privacy and democracy concerns in a letter to WBD’s CEO about foreign money and governance.
- Affinity Partners (Jared Kushner’s fund) has withdrawn from Paramount’s bid, confirmed by an on-the-record spokesperson.
- Warner Bros. Discovery’s board is expected to reject Paramount’s $30-per-share all-cash offer ahead of a Dec. 22 legal deadline.
- Roughly 60% of the ~$40B equity financing in Paramount’s latest offer came from sovereign wealth funds (Saudi PIF, Abu Dhabi’s L’imad, Qatar’s QIA).
- Paramount structured the bid so foreign partners and Affinity would have no voting or governance rights; Ellison family and RedBird would control governance.
- Later bid versions included the Ellison family backstopping all $40.7B in equity commitments, including via Oracle stock; Oracle shares are ~45% off their September high.
- If Paramount raises its offer, it would need to exceed $30/share, per Axios sources.
- In a regulatory filing, Netflix co-CEOs Greg Peters and Ted Sarandos pledged that Netflix will release movies theatrically once its $83B acquisition of WBD’s TV/film assets closes.
- Netflix said the deal would 'strengthen' Warner’s iconic studio, support jobs, and that it expects to win regulatory approval.
- Article notes mounting political scrutiny, citing Sen. Elizabeth Warren’s criticism that a Netflix–WBD deal could control close to half the streaming market.
- MoffettNathanson analysis flags likely U.S. and European regulatory focus on production market power and streaming market share.
- NPR reports Paramount’s prior ownership paid $16 million to settle a Trump lawsuit against CBS’s 60 Minutes to help bring the Ellison/Skydance–Paramount acquisition to the finish line.
- Clarifies that Netflix’s offer would carve out CNN (spinning it off with other cable networks), deepening uncertainty for CNN employees amid competing bids.
- WBD board has 10 days to respond to Paramount’s tender offer and has indicated Netflix’s bid is superior on financial grounds.
- Trump’s new comments could be leveraged to argue perceived regulatory risk for the Netflix deal because it omits WBD’s cable networks, including CNN.
- Paramount’s outside financiers include PIF, L’imad Holding, QIA and Affinity Partners, contributing at least $24 billion and agreeing to forgo board seats and voting rights.
- Paramount executives said Warner 'never engaged meaningfully' with six separate proposals.
- NPR pegs the Netflix–Warner agreement at about $83B and specifies it covers streaming and studios while spinning off CNN and other cable channels.
- Warner did not respond to NPR’s request for comment; Netflix planned an investor call Monday.
- Trump offered noncommittal remarks, praising Netflix but noting market share concerns; article underscores the deal requires FTC/DOJ approval.
- Additional context on Ellisons’ ties to Trump and recent CBS News leadership changes (Bari Weiss named editor in chief; new conservative ombudsman) potentially relevant to regulatory optics.