Jared Kushner's private equity firm, Affinity Partners, has withdrawn its financial backing from Paramount Skydance's bid to acquire Warner Bros. Discovery. The firm confirmed its exit on Tuesday, December 16, 2025, just a week after Paramount launched its $108.4 billion all-cash offer for Warner Bros. Discovery. This move comes shortly after Netflix reached an agreement to acquire a portion of Warner Bros. in a deal valued at $82.7 billion.
Paramount's bid aimed to bypass Warner Bros. Discovery's management and appeal directly to its shareholders with a more lucrative offer of $30 per share, exceeding Netflix's $27.75 per share offer. Warner Bros. Discovery, a major player in Hollywood, owns Warner Bros. Pictures, HBO, the DC Comics universe, and the Harry Potter franchise. The acquisition of Warner Bros. Discovery is poised to reshape the streaming landscape by either solidifying Netflix's dominance or establishing Paramount as a major competitor.
Paramount's decision to directly approach Warner Bros. Discovery shareholders was prompted by the company's belief that Warner's top executives were not engaging meaningfully with their previous offers. Paramount's offer encompassed Warner Bros. Discovery's entire portfolio, including cable networks like CNN, which were excluded from Netflix's bid. In its appeal to shareholders, Paramount argued that its offer was more likely to gain regulatory approval from the Trump administration. President Trump had previously voiced concerns that the Netflix-Warner Bros. Discovery deal "could be a problem" due to the combined market share.
Affinity Partners cited the changing dynamics of the investment landscape as the reason for its withdrawal. In a statement, the firm said, "With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity". Despite withdrawing its backing, Affinity Partners stated that it "continue[s] to believe there is a strong strategic rationale for Paramount's offer". The amount Kushner's Affinity Partners was contributing to the offer was not disclosed in Paramount's latest SEC filings.
Warner Bros. Discovery is reportedly planning to reject Paramount Skydance's takeover bid, citing concerns about financing and other terms. The Warner Bros. Discovery board believes that the existing agreement with Netflix offers greater value, certainty, and more favorable terms than Paramount's proposal. One major concern for Warner Bros. Discovery is the financing proposed by Paramount, which is led by David Ellison. The equity is backstopped by a trust managed by Ellison's father, Larry Ellison, the founder of Oracle Corp. Warner Bros. Discovery is concerned that because it's a revocable trust, assets could be withdrawn at any time, leaving Warner Bros. Discovery with no recourse.
The Paramount Skydance tender offer is set to expire on January 8, 2026, unless it is extended. The offer is backed by the Ellison family, investment firm RedBird Capital, Saudi Arabia's Public Investment Fund, and Qatar Investment Authority.
