Kushner’s Affinity withdraws from Warner Bros. takeover

The participation of Donald Trump’s son-in-law in a deal that the president has said he would personally review drew a lot of unwelcome attention to Kushner, according to people familiar with the decision.

Jared Kushner’s Affinity Partners is exiting from the takeover battle for Warner Bros. Discovery Inc.

The private equity firm emerged this month as a participant in Paramount Skydance Corp.’s hostile bid for Warner Bros., which valued the media and entertainment company at $108.4 billion including debt. Paramount is seeking to scupper Netflix Inc.’s $82.7 billion deal for Warner Bros.

Affinity was helping to finance Paramount’s move. The participation of Donald Trump’s son-in-law in a deal that the president has said he would personally review drew a lot of unwelcome attention to Kushner, according to people familiar with the decision. Affinity’s $200 million contribution to the financing was relatively minor, they said.

The dynamics ​of an investment have changed since it became involved in the process in October, a representative for Affinity said.

“With ​two ​strong competitors ​vying to secure ​the future ​of this ​unique American ​asset, ​Affinity ​has ​decided no longer to pursue ​the opportunity,” the investment firm said. “We ​continue to ​believe ​there is a strong strategic rationale for Paramount’s offer.”

Warner Bros. is planning to reject Paramount’s offer due to concerns about financing and other terms, people familiar with the matter said Tuesday.

The battle for Warner Bros. stands to reshape the entertainment industry regardless of which bidder emerges victorious. With the company’s films and TV shows, Netflix would wield tremendous power over the content offered to online audiences. Paramount, meanwhile, aims to marry two legacy Hollywood studios to counter the influence of Netflix, Walt Disney Co. and Amazon.com Inc.

Both bids raise significant antitrust concerns — something underscored by multibillion-dollar breakup fees the parties have offered. Netflix and Paramount have each been laying the groundwork to win over the White House.

Paramount’s offer is being bankrolled by a list of influential Middle Eastern investors, including Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority, as well as a little-known group from Abu Dhabi called L’imad Holding Co. Kushner has strong ties to the Middle East. He founded Affinity in 2021 with funding from sovereign wealth funds from the region.

This week, Bloomberg News reported that Affinity dropped plans for a hotel in Serbia after tensions around the project culminated in the indictment of a government official who helped clear a path for its development.