Jared Kushner’s private equity firm, Affinity Partners, is reportedly pulling out as a partner of Paramount Skydance’s attempted hostile takeover of Warner Bros. Discovery, whose board unanimously urged shareholders to reject the $78 billion bid from the Ellison family early Wednesday.
Affinity withdrew its backing of Paramount’s proposal after Kushner’s involvement in a deal that his father-in-law, President Trump, said he would personally review drew a significant amount of unwanted scrutiny, sources told Bloomberg News.
Kushner’s firm entered the fray and pitched in $200 million to Paramount’s offer — a relatively minor contribution, according to Bloomberg.
“With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity,” the investment firm told the financial news outlet.
“We continue to believe there is a strong strategic rationale for Paramount’s offer.”
The Post has sought comment from Affinity and Paramount.
WBD’s board on Wednesday told shareholders that they should reject Paramount’s offer in favor of the Netflix bid.
“Following a careful evaluation of Paramount’s recently launched tender offer, the Board concluded that the offer’s value is inadequate, with significant risks and costs imposed on our shareholders,” board chair Samuel A. Di Piazza Jr. said.
The statement from WBD’s board urging shareholders to reject Paramount’s bid likely clears the way for streaming giant Netflix to acquire the company’s most prized assets, including HBO and the Warner Bros. film studio.
The Netflix offer values WBD at $82.7 billion, or $27.75 per share. Paramount offered $30 per share all-cash for the entire WBD portfolio, which includes struggling cable television networks such as CNN.
WBD CEO David Zaslav has long preferred the Netflix bid in light of concerns about Paramount’s financing structure, including an equity backstop tied to a revocable trust linked to Larry Ellison’s family wealth.
Earlier this week, The Post reported that Paramount has no immediate plans to raise its $30-per-share, all-cash hostile bid for WBD.
Instead, Paramount is continuing to pitch shareholders that its $78 billion offer is superior to WBD’s agreed deal with Netflix.
David and Larry Ellison and RedBird Capital plan to tell shareholders they will eventually cover the $2.8 billion breakup fee tied to the Netflix deal if enough investors tender shares by the Jan. 8 deadline.
Despite expectations of a holiday bidding war, sources say Paramount believes it does not need to act quickly based on current investor feedback, The Post reported earlier this week.
Paramount argues its bid offers faster, cleaner value for shareholders compared with Netflix’s deal, which it says faces regulatory delays and complex financing.
The company says it has lined up financing from Bank of America, Apollo, Larry Ellison and Gulf state sovereign wealth funds.
WBD and Netflix counter that Paramount’s financing relies on a revocable trust tied to Larry Ellison’s Oracle stock, which has lost significant value amid a broader tech selloff.
WBD’s board on Wednesday said the Ellison family has not provided a firm guarantee that it will make up for any potential financing shortfall for the bid.
Netflix co-CEO Ted Sarandos said the board reinforced that Netflix’s deal “is superior and that our acquisition is in the best interest of stockholders.”
Sarandos and fellow co-CEO Greg Peters told WBD shareholders they are confident the Netflix transaction will win regulatory approval and close within 12 to 18 months, calling the deal “the best outcome for consumers, creators, stockholders, and the broader entertainment industry.”
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