Kushner’s Affinity pulls out of Paramount’s bid for Warner Bros
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The news: Jared Kushner’s Affinity Partners has pulled out of the takeover battle for Warner Bros Discovery, Bloomberg reported citing a representative from the firm.
The private equity firm had been backing Paramount Skydance’s hostile USD108.4 billion ($163.4 billion) bid to topple Netflix’s agreed USD82.7 billion deal for Warner Bros.
What they 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 firm told Bloomberg.
“We continue to believe there is a strong strategic rationale for Paramount’s offer.”
The context: Affinity joined the process in October and was contributing about USD200 million in equity.
Meanwhile, Bloomberg also reported, citing sources, that Warner Bros is preparing to formally reject Paramount’s hostile bid due to issues with financing and other terms.
Paramount’s proposal is backed by investors including Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and a lesser-known Abu Dhabi firm, L’imad Holding.
Kushner founded Affinity in 2021 with funding from Middle Eastern sovereign wealth funds. The Wall Street Journal also reported this week that Affinity dropped plans for a hotel project in Serbia following the indictment of a government official involved in its approval.
The source: Bloomberg
