Kushner's Affinity Abandons Warner Bros. Takeover Bid Amid Shift in Paramount Proposal

Jared Kushner's Affinity Partners has withdrawn from the takeover battle for Warner Bros. Discovery Inc., a move that comes as the company is planning to reject a proposal from Paramount Skydance Corp. that Affinity had backed. Warner Bros. is valued at $108.4 billion, including debt, and Paramount's bid was seen as a challenge to Netflix Inc.'s $82.7 billion deal for the Hollywood company. According to people familiar with the matter, Warner Bros.' board will urge shareholders as soon as Wednesday to reject Paramount's tender offer. The board views its existing agreement with Netflix as offering greater value, certainty, and terms than what Paramount has proposed, the people said, asking not to be identified discussing confidential information. Affinity was helping to finance Paramount's move, but the participation of Kushner, Donald Trump's son-in-law, in the deal drew a lot of unwelcome attention, the people said. The decision to withdraw from the takeover battle is seen as a strategic move by Affinity, which likely wanted to avoid further scrutiny and potential backlash. "The participation of Kushner in a deal that the president has said he would personally review drew a lot of unwelcome attention to Kushner," said a person familiar with the decision. This move is also seen as a sign that Affinity is prioritizing its reputation and avoiding any potential controversy. Warner Bros. has been at the center of a high-stakes battle for control, with Netflix and Paramount vying for dominance in the entertainment industry. The company's existing agreement with Netflix is seen as a key factor in its decision to reject Paramount's bid. "We believe our existing agreement with Netflix offers greater value, certainty, and terms than what Paramount has proposed," said a Warner Bros. spokesperson. The takeover battle has significant implications for the global entertainment industry, with Warner Bros. being one of the largest and most influential players. The company's decision to reject Paramount's bid is seen as a victory for Netflix, which has been expanding its reach in the entertainment industry through strategic acquisitions. "This move is a testament to Netflix's commitment to innovation and growth in the entertainment industry," said a Netflix spokesperson. As the takeover battle comes to an end, Warner Bros. is expected to focus on its existing agreement with Netflix. The company will likely continue to work with Netflix to develop new content and expand its reach in the global market. Meanwhile, Paramount is expected to regroup and reassess its strategy in the entertainment industry. The decision by Affinity to withdraw from the takeover battle marks a significant turning point in the battle for control of Warner Bros.