Jared Kushner’s Affinity Partners Exits Paramount Skydance’s $108 Billion Hostile Bid for Warner Bros. Discovery

Affinity Partners joined in October 2025 with an undisclosed commitment—initial reports pegged it at around $200 million, a minor slice of the massive deal—alongside heavyweights like Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, Abu Dhabi’s Mubadala, and RedBird Capital.[1][2] The firm’s statement emphasized: “With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity,” while affirming Paramount’s “strong strategic rationale.”[1][2]

Strategic Shifts in the Streaming Wars Consolidation

The dueling bids underscore accelerating media M&A consolidation 2025, as legacy studios grapple with streaming losses and cord-cutting. Paramount’s offer encompasses Warner’s full portfolio—including CNN and Discovery cable networks—positioning it to challenge Netflix’s dominance in a combined entity valued far higher than Netflix’s partial play.[2] Warner Bros. Discovery, home to HBO, DC Comics, and Harry Potter, is reviewing the proposal and plans a shareholder update soon.[2]

Financial terms highlight premiums: Paramount’s $30/share tops Netflix’s $27.75, potentially swaying arbitrageurs in this high-stakes tender offer expiring January 8, 2026.[1][2] Post-close, Netflix’s deal hinges on spinning off Discovery Global by Q3 2026.[1]

Regulatory and Political Headwinds

Affinity’s exit strips Paramount of a Trump-adjacent anchor—Kushner, Trump’s son-in-law, had been viewed as a potential bridge to administration approval.[2] President Trump flagged Netflix’s deal as a “problem” due to market share concentration and vowed involvement, while criticizing CBS (Paramount-owned) over a “60 Minutes” segment.[1][2] Democratic lawmakers, including Rep. Ayanna Pressley, raised alarms on data privacy, democracy, and foreign influence in U.S. media.[1]

Paramount’s filing commits backers to forgo governance rights or board seats, aiming to mitigate antitrust concerns in a deal reshaping **Hollywood M&A regulatory risks 2025**.[1] Sovereign funds from Saudi Arabia, Qatar, and Abu Dhabi dominate remaining financing, amplifying geopolitical tensions.

Implications for Private Equity in Media Deals

For private equity exit strategies in media and entertainment, Affinity’s swift pivot signals caution in hostile bids amid fluid landscapes—joining in October, exiting weeks later as Netflix countered.[1][2] Similar to KKR’s disciplined pullbacks in volatile sectors, this reflects PE’s focus on risk-adjusted returns over splashy headlines.

Broader **streaming M&A trends 2025** point to mega-consolidation: a Paramount-Warner tie-up could forge a Netflix rival with 200M+ subscribers, while Netflix bolsters content via HBO. Warner’s cable spinoff looms as a value-unlock catalyst, echoing Bain & Company analyses of media asset carve-outs driving 15-20% valuation uplifts.

• Upside for Paramount: Full asset grab, higher premium, potential Trump-era greenlight on foreign capital.
• Risks: Hostile dynamics, Ellison-Trump feud, intensified FTC/DOJ scrutiny on market power.
• Warner Shareholders: Tender option favors Paramount short-term; board poison pill could force negotiations.

As bids evolve, this saga tests **deal advisory strategies in contested media auctions**, with outcomes hinging on regulatory nods and shareholder votes by early 2026.