Affinity PartnersDrops Out of Hostile Bid for Warner Bros. Discovery
the staff of the Ridgewood blog
Wall Street NY, the battle for Hollywood’s most storied assets has taken another dramatic turn. Affinity Partners, the private equity firm founded by Jared Kushner , has officially withdrawn its financial backing from Paramount’s massive $108.4 billion hostile bid for Warner Bros. Discovery (WBD).
The move comes just days after WBD’s board formally urged shareholders to reject Paramount’s offer in favor of a competing $83 billion merger agreement with Netflix.2
Why Kushner’s Exit Matters
Kushner’s withdrawal removes a significant political and strategic layer from Paramount’s pursuit of WBD. Here are the key takeaways from the latest developments:
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Political Leverage Lost: Paramount had positioned its bid as more likely to win regulatory approval under the Trump administration.3 With Kushner (President Trump’s son-in-law) out, that “inside track” advantage has weakened.
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Trump’s Fraying Ties with the Ellisons: Despite Paramount CEO David Ellison being the son of major Trump donor Larry Ellison, the President recently criticized Paramount-owned CBS News, stating that 60 Minutes has treated him “worse” since the takeover.4
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The “Hostile” Reality: Paramount Skydance is attempting to bypass Warner’s management with a $30 per share all-cash offer, significantly higher than Netflix’s $27.75 cash-and-stock deal.5
Paramount vs. Netflix: The Battle for the “Big Five”
Warner Bros. Discovery is the crown jewel of the streaming era, owning HBO, the DC Universe, Harry Potter, and Warner Bros. Pictures. The winner of this bidding war will likely dominate the streaming landscape for the next decade.
| Feature | Paramount’s Hostile Bid | Netflix’s Agreed Deal |
| Total Value | $108.4 Billion | $82.7 Billion |
| Price Per Share | $30.00 (All Cash) | $27.75 (Cash + Stock) |
| Portfolio Scope | Includes CNN & Linear Networks | Studios & Streaming Only |
| Current Status | Hostile Tender Offer (Active) | Board-Approved (Pending) |
Financing Under the Microscope
Despite losing Kushner’s Affinity Partners, Paramount insists its financing is “airtight.” The bid is currently supported by:
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Gulf Sovereign Wealth Funds: Significant backing from Saudi Arabia, Abu Dhabi, and Qatar.6
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RedBird Capital Partners: A major player in media and sports investment.7
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The Ellison Family: Supported by Oracle founder Larry Ellison.8
However, the WBD Board has raised red flags, calling the financing “opaque” and noting that Paramount’s credit rating sits just above “junk” status.9 They argue that Netflix’s $400 billion market cap offers far more stability for shareholders.
What’s Next for Shareholders?
The WBD Board has made its stance clear: Reject Paramount, Accept Netflix. But the ultimate power lies with the shareholders. Paramount’s tender offer allows investors to sell their shares directly to David Ellison’s group, bypassing the board’s recommendation.11
Key Date to Watch: Paramount’s tender offer is currently set to expire on January 8, 2026.12
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who cares
people who have jobs
People who are productive will always have jobs. The ‘dead wood’ always needs to get pruned. I don’t see how that has anything to do with a merger if there is duplication?