Jared Kushner’s private equity firm has reportedly stepped back from previous efforts to take over the entertainment giant Warner Bros Discovery, following scrutiny of his involvement.
Affinity Partners emerged as a key backer of a $108.4bn hostile bid by Paramount Skydance for control of WBD. Kushner, Donald Trump’s son-in-law and adviser, set up Affinity.
Paramount, controlled by the billionaire Ellison family, is attempting to sink a $82.7bn deal WBD struck to sell its storied Warner Bros movie studios, premier HBO cable network and HBO Max streaming service to Netflix.
WBD, which also owns an array of media assets including CNN and the Discovery Channel, has pledged to “carefully review and consider” Paramount’s unsolicited offer. It is expected to publicly respond, and advise shareholders on whether to accept or reject the bid, in the coming days.
A press release announcing Paramount’s hostile bid last week said the offer would be backstopped by the Ellison family and RedBird Capital, a private equity firm. But a regulatory filing later revealed outside funders including Affinity, Saudi Arabia’s Public Investment Fund, and the Qatar Investment Authority.
“With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity,” Affinity told Bloomberg News on Tuesday. “We continue to believe there is a strong strategic rationale for Paramount’s offer.”
Kushner’s role had raised eyebrows. Trump has made clear that he expects to be “involved” as federal regulators scrutinize any deal for WBD.
Affinity did not immediately respond to a request for comment from the Guardian on Tuesday.
The US president, meanwhile, has tried to distance himself from Paramount and the Ellisons. He has previously been seen as closely allied with Larry Ellison, one of the world’s richest men, and father of David Ellison, chairman and CEO of Paramount Skydance.
Trump has expressed frustration in recent weeks over his treatment by CBS News, which is owned by Paramount, and its 60 Minutes show.
“For those people that think I am close with the new owners of CBS, please understand that 60 Minutes has treated me far worse since the so-called “takeover,” than they have ever treated me before,” the president wrote on his Truth Social platform on Tuesday. “If they are friends, I’d hate to see my enemies!”
