Jared Kushner’s private equity firm, Affinity Partners, is stepping back from a group planning to back Paramount Skydance’s hostile takeover of Warner Bros. Discovery. A spokesperson shared that the investment landscape changed significantly since they got involved in October. They noted there is still strong logic behind Paramount’s bid.
David Ellison, CEO of Paramount Skydance, recently pitched a $108 billion unsolicited offer for Warner Bros. Discovery. This offer follows a deal between Netflix and Warner Bros. for key assets, like HBO Max and Warner Bros. studios.
Ellison’s bid is ambitious and supported by influential figures, including his father, Larry Ellison, the chairman of Oracle. Initially, and crucially, Affinity Partners was one of the funds backing this takeover, alongside investments from public funds in Saudi Arabia and Qatar.
As news broke of Kushner’s firm pulling out, it coincided with reports indicating Warner Bros. was likely to reject the bid. This drama unfolded further when Donald Trump expressed dissatisfaction with David Ellison on Truth Social, suggesting that the new CBS owners treated him poorly since their acquisition.
For this potential deal between Warner Bros. and Paramount Skydance to succeed, it will face scrutiny from government bodies like the Justice Department and the Federal Trade Commission.
In recent years, media consolidation has surged, with experts noting that such mergers can lead to monopolistic practices. The concern revolves around reduced competition and content diversity, mirroring fears raised during past media consolidations.
As this story develops, it highlights not just corporate maneuvers but also the complex interactions between business and politics.
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