Jared Kushner’s Affinity Partners backs out of Paramount Skydance’s hostile bid for Warner Bros. Discovery

Affinity Partners, a private equity firm founded by Jared Kushner, has announced its decision to withdraw from Paramount Skydance’s $108.4 billion hostile bid for Warner Bros. Discovery. This move comes in the wake of Netflix’s agreement to acquire a portion of Warner Bros., valued at $82.7 billion, just days before Paramount Skydance made its bid.

In a statement to CBS News, an Affinity spokesperson cited the intense competition in the bidding process as the reason for their withdrawal. The firm acknowledged the strategic rationale behind Paramount’s offer but noted that the dynamics of the investment had shifted significantly since they first got involved in October.

Paramount Skydance, the parent company of CBS News, had secured outside financing partners for its bid, including Saudi Arabia’s Public Investment Fund and Qatar Investment Authority. However, Affinity’s association with President Trump raised concerns among some Democratic lawmakers about foreign involvement in America’s media industry.

In response to these concerns, the outside investment firms involved in Paramount Skydance’s bid have agreed to relinquish any governance rights, including seats on the board of directors of the combined entity. President Trump has also expressed his intention to be involved in the government approval process for the deal, citing potential issues with the size of the combined company.

Despite Paramount Skydance’s bid, Netflix had already struck a deal to acquire certain assets of Warner Bros. Discovery, including the film studio and streaming service HBO Max. The completion of Netflix’s deal is expected to coincide with Warner Bros. Discovery’s spinoff of its cable television networks division, Discovery Global, in the third quarter of 2026.

Paramount Skydance’s tender offer is scheduled to expire on Jan. 8, 2026, unless extended. The bid is supported by the Ellison family, with Larry Ellison, the father of Paramount CEO David Ellison and the leader of Oracle Corp., as a key backer. RedBird Capital, an investment firm, is also involved in the bid.

In conclusion, the media landscape is undergoing significant transformations as major players like Paramount, Netflix, and Warner Bros. Discovery navigate complex deals and partnerships. The involvement of Affinity Partners and other outside investors in these high-stakes bids underscores the importance of strategic decision-making and regulatory approval processes in shaping the future of the industry.