A sudden withdrawal from the hostile takeover attempt has shaken the media landscape. Jared Kushner’s private‑equity firm, Affinity Partners, announced that it would no longer support Paramount Skydance’s bid to acquire Warner Bros. Discovery.
Affinity’s Decision
“With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity,” a spokesperson for the company, led by President Donald Trump’s son‑in‑law, said in a statement to NBC News. The firm added that the dynamics of the investment had changed significantly since it initially became involved in October. “We continue to believe there is a strong strategic rationale for Paramount’s offer,” the spokesperson added.
The statement came as a surprise to many observers who had seen Affinity Partners listed among the major backers of the $108 billion hostile offer. The firm’s withdrawal leaves Paramount Skydance and its co‑investors scrambling to fill the gap.
Paramount Skydance’s Bold Move
On December 8, Paramount Skydance CEO David Ellison announced an unsolicited takeover offer of more than $108 billion for all of Warner Bros. Discovery’s assets. The bid was aimed at the entire company, rather than just its most valuable parts. The offer was backed by the wealth of Ellison’s father, Larry Ellison, chairman and majority shareholder of Oracle.
The bid also included funding commitments from several major sovereign wealth funds: Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and a large Abu Dhabi‑based fund. Affinity Partners had been a key financial backer, but its sudden exit has left the consortium without one of its strongest supporters.
Competing Offers and Warner’s Response
Just days before the hostile bid, Netflix and Warner Bros. Discovery announced a separate deal under which Netflix would acquire the most valuable parts of Warner. Those assets include the HBO Max streaming service, HBO network, and Warner Bros. film studios.
Reports have indicated that Warner Bros. Discovery was preparing to reject Paramount Skydance’s bid as early as Wednesday. The company’s stance was reinforced by a statement from President Trump on Truth Social, where he expressed displeasure with David Ellison. Trump wrote: “For those people that think I am close with the new owners of CBS, please understand that 60 Minutes has treated me far worse since the so‑called ‘takeover,’ than they have ever treated me before,” he added. “If they are friends, I’d hate to see my enemies!”
Regulatory Hurdles
Any deal between Warner Bros. Discovery and Paramount Skydance will likely need to be cleared by the Justice Department’s antitrust division and the Federal Trade Commission. The potential consolidation of two of the largest media companies in the United States has drawn scrutiny from regulators who will examine the impact on competition and consumer choice.
Industry Impact
Paramount, Warner Bros. Discovery, and Netflix did not immediately respond to requests for comment. The market has reacted to the news with volatility in stock prices and speculation about the future of streaming services.
Netflix’s journey from a DVD‑by‑mail company to a giant subscription‑based streaming service is notable. It now reaches more than a half‑billion people across 190 countries through 50 languages.
Key Takeaways
- Affinity Partners has withdrawn from supporting Paramount Skydance’s $108 billion hostile takeover bid for Warner Bros. Discovery.
- The bid, launched on December 8, is backed by Larry Ellison’s wealth and commitments from major sovereign funds.
- Warner Bros. Discovery is preparing to reject the bid, and the deal will require clearance from the DOJ and FTC.
The sudden change in investment dynamics has left the media industry watching closely as the next moves unfold.
