A private equity firm linked to Jared Kushner, President Donald Trump’s son-in-law, has withdrawn its support for Paramount’s hostile takeover bid for Warner Bros. Discovery. Paramount initiated a competing bid following Warner’s acquisition by Netflix, offering a higher price per share. The potential acquisition of Warner, a major Hollywood studio with valuable assets, could significantly impact the streaming industry landscape. Paramount decided to directly engage with Warner’s shareholders after unsuccessful attempts to negotiate with the management.
Paramount unveiled the specifics of its bid, inviting Warner shareholders to sell their shares at a fixed price. Paramount aims to acquire Warner’s entire portfolio, including assets excluded by Netflix. The firm emphasized that its offer might have better chances of passing regulatory scrutiny under the Trump administration.
The withdrawal of Kushner’s firm’s financial support diminishes Paramount’s leverage in winning over Trump. The exact financial contribution from Kushner’s Affinity Partners remains undisclosed. Paramount’s bid retains support from wealth funds linked to governments in the Persian Gulf region.
While Paramount is led by David Ellison, son of prominent Trump supporter Larry Ellison, Trump has expressed dissatisfaction with the Ellisons. Warner is evaluating Paramount’s offer and is expected to provide shareholders with a recommendation regarding the bid compared to the deal with Netflix.