Paramount’s Bid for Warner Bros. Discovery
AP — Jared Kushner, who is President Donald Trump’s son-in-law, has withdrawn his support for the hostile takeover attempt by Paramount aimed at Warner Bros. Discovery, as confirmed on Tuesday.
Following an agreement for Warner to be purchased by Netflix in early December, Paramount made a competing offer that sought to bypass Warner’s management by going directly to shareholders. Paramount is offering $30 for each Warner share, while Netflix’s offer stands at $27.75.
Warner, recognized as one of Hollywood’s “Big 5” studios, is known for its operations like Warner Bros. Pictures, HBO, the DC Comics Universe, and the Harry Potter franchise. Analysts suggest that Warner could be an acquisition target, with discussions around either keeping Netflix ahead of its competition or creating a new powerhouse with Paramount.
Given that Paramount is considerably smaller than Netflix, the company expressed that it chose to avoid engaging with Warner’s management after previous offers were not sufficiently acknowledged by executives.
Paramount provided details of its latest proposal, giving Warner shareholders the chance to sell their shares directly at a specified price to support the bid. The company aims to acquire Warner’s full portfolio, which includes cable networks like CNN, something Netflix opted not to include in its bid.
In its appeal to shareholders, Paramount stated that this proposal might navigate regulatory reviews more smoothly under the Trump administration. The president himself noted that the merger between Warner and Netflix “could be problematic” due to their combined market power.
Kushner’s withdrawal of financial backing removes a significant advantage in combating President Trump. The specific amount contributed by Kushner’s Affinity Partners to the takeover proposal remains undisclosed in the latest SEC filing from Paramount.
“With two strong contenders aiming to shape the future of this unique American asset, Affinity has opted to step back from the opportunity,” the statement read. “Investment dynamics have changed a lot since we first got involved in October. We still believe Paramount’s offer has strong strategic merit.”
Reportedly, Paramount’s bid still has backing from wealth funds associated with three Persian Gulf nations: Saudi Arabia, Abu Dhabi, and Qatar.
Paramount, which owns CBS, MTV, and the streaming platform Paramount+, is about to welcome a new president, David Ellison, who is the son of a significant Trump donor. Nonetheless, President Trump has criticized the treatment of the Ellisons on CBS News’ “60 Minutes.” He remarked, “If they’re friends, I don’t want to meet enemies!” on Truth Social on Tuesday.
Warner is currently evaluating Paramount’s offer and will inform shareholders soon about whether it presents a better deal than selling to Netflix.
