Jared Kushner pulls out of Paramount’s hostile bid for Warner Bros. Discovery

Affinity Partners, the private equity firm owned by Jared Kushner, has withdrawn its financial backing for Paramount’s hostile $30-per-share tender offer for Warner Bros. Discovery, which was launched to outbid Netflix’s $27.75-a-share agreement; Affinity said deal dynamics changed since October but did not disclose the amount it had planned to contribute. The pullback removes a potential political advantage Paramount had highlighted as possibly easing regulatory scrutiny under the Trump administration, though Paramount’s bid remains supported by Gulf sovereign wealth funds and seeks to buy Warner’s full portfolio including CNN. The development narrows Paramount’s leverage in a high-stakes auction that could reshape the streaming landscape and leaves Warner’s board and shareholders to determine whether to accept Paramount’s higher cash proposal or proceed with the Netflix transaction.

Analysis

Affinity Partners, the private equity firm owned by Jared Kushner, confirmed it has withdrawn financial backing for Paramount’s hostile $30-per-share tender offer for Warner Bros. Discovery, which was launched to outbid Netflix’s previously announced $27.75-per-share agreement. Paramount initiated the shareholder-directed tender to bypass Warner management after alleging earlier offers saw no meaningful engagement, and its proposal uniquely seeks Warner’s full portfolio including cable assets such as CNN that Netflix excluded.

Affinity said deal dynamics changed since it became involved in October and did not disclose the size of its planned contribution; its exit removes a potential political advantage Paramount was touting given the Trump administration’s expressed concerns that the Warner-Netflix tie-up “could be a problem.” Paramount’s bid remains financed by Gulf sovereign wealth funds reportedly from Saudi Arabia, Abu Dhabi and Qatar, leaving the offer viable but politically and financially weakened.

The withdrawal narrows Paramount’s path to victory and increases the odds that Warner will proceed with the Netflix transaction, a result that would consolidate Netflix’s content position and materially affect streaming competition. Market implications are uncertainty-driven: shareholders should watch Warner’s formal response, any updated financing disclosures, and regulatory signals as determinants of the likely acquirer and valuation realization.

Key Decisions for Investors

• Monitor Warner’s imminent board recommendation and shareholder tender response and act quickly on any explicit acceptance or rejection announcements
• Reassess takeover arbitrage exposure to WBD given Affinity’s withdrawal; consider hedging or reducing positions until financing and shareholder outcomes are clearer
• Track SEC filings for any new financing disclosures from Paramount and statements from Gulf backers as changes there materially alter the bid’s viability
• Watch regulatory and political commentary from the Trump administration closely because favorable or adverse signals will meaningfully affect the probability of either transaction closing