Jared Kushner's private equity firm, Affinity Partners, has reportedly withdrawn from its previous efforts to acquire Warner Bros Discovery (WBD), following scrutiny of Kushner's involvement. The firm had emerged as a key backer of a $108.4bn hostile bid by Paramount Skydance for control of WBD.
Paramount, controlled by the billionaire Ellison family, is attempting to derail an $82.7bn deal WBD struck to sell its Warner Bros movie studios, HBO cable network, and HBO Max streaming service to Netflix. WBD, which also owns CNN and the Discovery Channel, has pledged to review Paramount's unsolicited offer and advise shareholders in the coming days.
A regulatory filing revealed that outside funders of Paramount's bid included Affinity, Saudi Arabia's Public Investment Fund, and the Qatar Investment Authority. Affinity told Bloomberg News: '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 role had raised eyebrows, as US President Donald Trump has made clear he expects to be 'involved' in federal scrutiny of any deal for WBD. Trump has also expressed frustration over his treatment by CBS News, owned by Paramount, and its 60 Minutes show.
