A private equity firm owned by Jared Kushner has withdrawn its financial support from Paramount Global’s aggressive attempt to acquire Warner Bros. Discovery, marking a notable shift in one of the most closely watched media takeover battles of the year.
Affinity Partners, the investment firm founded by Kushner—President Donald Trump’s son-in-law—confirmed on Tuesday that it will no longer participate in Paramount’s unsolicited bid. The decision comes shortly after Warner Bros. Discovery agreed earlier this month to be acquired by Netflix in a deal valued at $27.75 per share.
Paramount countered that agreement with a higher, hostile offer of $30 per share, choosing to bypass Warner’s leadership and take its proposal directly to shareholders. The move was designed to disrupt the Netflix deal and position Paramount as a transformative force in the intensifying competition among global streaming and media giants.
Warner Bros. Discovery is considered one of Hollywood’s most influential studios, with assets that include Warner Bros. Pictures, HBO, CNN, the DC Comics franchise, and the Harry Potter intellectual property. Industry analysts say control of the company could significantly alter the balance of power in the entertainment and streaming sectors.
Paramount has argued that its bid could face fewer regulatory hurdles than the Netflix transaction. President Trump has publicly suggested that the Netflix-Warner combination may draw scrutiny due to its potential market dominance. Paramount also emphasized that its proposal includes Warner’s full portfolio, including cable networks that Netflix has reportedly excluded from its offer.
Kushner’s exit, however, removes a potentially strategic advantage for Paramount. While the size of Affinity Partners’ financial commitment was not disclosed in recent regulatory filings, its involvement had been viewed as a possible political asset given Kushner’s close ties to the president.
In a statement, Affinity Partners said the investment landscape had changed materially since it became involved in October. “With two strong competitors competing for the future of this iconic American company, we have decided not to continue pursuing this opportunity,” the firm said, while noting it still sees strategic merit in Paramount’s proposal.
Despite Kushner’s withdrawal, Paramount’s bid remains backed by sovereign wealth funds linked to Gulf nations, widely reported to include Saudi Arabia, Abu Dhabi, and Qatar. The company is led by David Ellison, whose family has been prominent donors to Trump, though the president has recently criticized the Ellisons over CBS News coverage, including segments aired on “60 Minutes.”
Warner Bros. Discovery confirmed it is evaluating Paramount’s offer and is expected to advise shareholders in the coming days on whether the higher bid outweighs the certainty of the Netflix agreement.
The outcome of the contest could redefine the future of legacy media companies as they race to scale up against dominant streaming platforms.
