Kushner Firm Drops Out of Paramount’s Hostile $108B Warner Bros. Discovery Bid

Affinity Partners, the private equity firm owned by Jared Kushner, has withdrawn its financing from Paramount’s $108 billion hostile, all-cash $30-per-share tender offer for Warner Bros. Discovery — a bid that had been launched to compete with Netflix’s earlier $27.75-per-share agreement (which would exclude certain cable assets such as CNN). Paramount’s offer remains backed by sovereign wealth funds reportedly from Saudi Arabia, Abu Dhabi and Qatar, though Affinity said the investment dynamics have changed and its contribution was not disclosed. The pullback diminishes Paramount’s financial and political firepower amid mounting antitrust scrutiny and controversy over Kushner and Trump’s involvement, increasing uncertainty about which bidder can clear regulatory hurdles and secure the asset.

Analysis

Affinity Partners, the private equity firm owned by Jared Kushner, withdrew its financing on Tuesday from Paramount’s $108 billion hostile all‑cash tender offer to acquire Warner Bros. Discovery at $30.00 per share, a bid launched to compete with Netflix’s earlier $27.75‑per‑share agreement. Affinity said "the dynamics of the investment have changed significantly" and that it would "no longer pursue the opportunity," while not disclosing its committed amount in SEC filings.

Paramount’s $30 offer remains supported by sovereign wealth funds widely reported as from Saudi Arabia, Abu Dhabi and Qatar, but Affinity’s exit reduces visible private capital backing and political cover. The Netflix agreement would exclude cable assets including CNN while Paramount seeks the whole company, a structural difference that amplifies antitrust complexity and valuation uncertainty.

Kushner’s involvement has drawn public criticism and the article highlights increased political scrutiny—Sen. Bernie Sanders criticized the role and the Senate is preparing "intense" antitrust hearings—while experts cited say both Paramount and Netflix face similar regulatory hurdles. That combination of political controversy and regulatory risk raises the probability of a protracted review or deal re‑pricing.

Affinity’s pullback materially lowers Paramount’s apparent financial and political firepower and increases the likelihood the competitive process will hinge on sovereign fund commitments, alternative financings, and regulatory outcomes. Expect sustained volatility in WBD and bidder shares until clearer financing disclosures and regulatory signals emerge.

Key Decisions for Investors

• Pause initiating new large positions in WBD until financing disclosures or regulatory guidance reduce deal uncertainty
• Monitor SEC filings and public statements from Paramount, Affinity and the reported sovereign backers to assess whether alternative financing appears and how much capital remains committed
• Track antitrust signals closely—DOJ/FTC commentary, the Senate hearings, and whether CNN or other cable assets are included—since regulatory setbacks would materially change valuations
• Consider short‑term hedges (options or reduced size) on existing WBD and bidder positions to protect against event‑driven volatility and potential deal re‑pricing