One of Jared Kushner’s firms announced on Tuesday it is exiting the takeover battle for Warner Bros. Discovery Inc., after previously helping finance Paramount Skydance Corp.’s bid to acquire the entertainment company.
Kushner, who founded Affinity Partners, is President Donald Trump’s son-in-law and is known as one of his top informal advisers.
Affinity Partners has now moved to pull a reported $200 million investment in Paramount’s hostile bid to take over WBD instead of Netflix, which was viewed with skepticism by Trump.
The development comes as the latest twist in the WBD saga, after the bidding war initially heated up earlier this year.
After Netflix appeared to win the battle to acquire WBD with a roughly $83 billion deal, Paramount CEO David Ellison decided to take his proposal directly to shareholders with a “hostile bid.” Ellison, whose longtime relationship with Trump appears to have frayed in recent days due to his ownership of CBS News, offered shareholders $18 billion more in an all-cash bid.
But the WBD board pressured shareholders on Wednesday not to accept Paramount’s proposal.
“We strongly believe that Netflix and Warner Bros. joining forces will offer consumers more choice and value, allow the creative community to reach even more audiences with our combined distribution, and fuel our long-term growth,” Warner Bros. said. “We made this deal because their deep portfolio of iconic franchises, expansive library, and strong studio capabilities will complement—not duplicate—our existing business.”
Shareholders still have the final say on whether to tender their shares in favor of Paramount’s offer for the entire company, which includes CNN, HBO Max, DC Comics, and the Discovery Channel.
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Paramount is offering $30 per Warner share to Netflix’s $27.75.
It is unclear whether the value has changed due to Affinity Partners’ decision to pull its investment from Paramount.