Jared Kushner’s private equity firm has withdrawn its support for Paramount’s hostile bid to acquire Warner Bros. Discovery, the company confirmed Tuesday. The move removes a potential advantage for Paramount as it vies to compete with Netflix, which agreed to acquire Warner earlier in December. Paramount’s offer, set at $30 per Warner share, exceeds Netflix’s $27.75 bid and seeks to bypass Warner’s management by appealing directly to shareholders.
Warner, one of Hollywood’s “big five” studios, owns major assets including Warner Bros. Pictures, HBO, the DC Comics universe, and the Harry Potter franchise. Industry experts say its acquisition could reshape the streaming landscape, either giving Netflix a stronger market lead or establishing Paramount as a new powerhouse. Paramount, significantly smaller than Netflix, argued that Warner’s leadership “never engaged meaningfully” with previous offers, prompting the company to make its latest bid public and offer shareholders the chance to tender their shares directly. The proposal includes Warner’s full portfolio, including cable networks like CNN that were excluded from Netflix’s bid, and Paramount suggested its offer might face fewer regulatory hurdles from the Trump administration.
Kushner’s withdrawal diminishes Paramount’s potential influence with former President Trump, who has expressed concern about the size of the Warner-Netflix deal. The exact amount Kushner’s firm, Affinity Partners, had contributed to the bid was not disclosed in recent SEC filings. Affinity Partners stated that while they still see a strategic rationale for Paramount’s offer, “the dynamics of the investment have changed significantly since we initially became involved in October.” Paramount’s bid continues to receive backing from sovereign wealth funds reportedly based in Saudi Arabia, Abu Dhabi, and Qatar.
Paramount, which owns CBS, MTV, and the streaming service Paramount+, is now led by David Ellison, son of a major Trump donor. The Ellisons recently faced criticism from former President Trump over a CBS News “60 Minutes” segment, prompting Trump to comment on Truth Social, “If they are friends, I’d hate to see my enemies!” Warner is reviewing Paramount’s offer and is expected to inform shareholders soon whether it represents a better deal than the Netflix acquisition.