Trump's Son-in-Law Withdraws from Paramount Bid

The Shift in Financial Support for a Major Media Merger

Jared Kushner, the son-in-law of former President Donald Trump, has decided to withdraw his financial backing for a significant media merger that could lead to increased influence over a major news network. His private equity firm, Affinity Partners, will no longer support Paramount Skydance's hostile takeover bid for Warner Bros. Discovery, which is valued at $108.4 billion.

Affinity Partners stated that with two strong competitors vying for the future of this unique American asset, they have decided not to pursue the opportunity. However, they still believe there is a strong strategic rationale for Paramount’s offer. According to Bloomberg, Affinity contributed approximately $200 million in equity toward the deal.

Representatives from Affinity Partners, Paramount, and Warner Bros. Discovery did not immediately respond to requests for comment. Kushner, who is married to Trump's daughter Ivanka, founded Affinity in 2021 with funding support from sovereign wealth funds in the Middle East. The Paramount Skydance bid is also supported by other state-owned investment funds in the region, including those from Saudi Arabia, Qatar, and Abu Dhabi.

The news of Kushner's change of heart came after his father-in-law, Donald Trump, took a fresh swipe at CBS's 60 Minutes. CBS is part of the Skydance fold. In a post on Truth Social, Trump wrote, "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. If they are friends, I'd hate to see my enemies!"

The Battle for Ownership of Warner Bros. Discovery

The competition for ownership of Warner Bros. Discovery between Paramount Skydance and streaming giant Netflix is set to have significant consequences for the media landscape, regardless of who wins. Netflix aims to acquire Warner Bros. Discovery's streaming, gaming, and studio properties, including HBO Max and WB Studios, in an $83.7 billion deal. This would consolidate two of the top five streaming platforms, which together account for nearly half the market.

Netflix CEO Ted Sarandos has also expressed the belief that movie theaters are "outdated," which could impact the future of theater releases if Netflix acquires WB’s substantial film studios.

Paramount, on the other hand, seeks total ownership of the conglomerate, including mainstream news network CNN, which Trump considers a major media adversary. Both deals pose significant antitrust concerns, shaking up the entertainment industry as major players become integrated and competition shrinks.

Paramount Skydance CEO David Ellison, son of billionaire Oracle co-founder and Trump ally Larry Ellison, has stated he would make changes to CNN if the takeover succeeds, which Trump hopes will happen. "I think the people that have run CNN for the last long period of time are a disgrace. I think it’s imperative that CNN be sold," Trump told reporters after a roundtable discussion with tech business leaders last week.

"I think CNN should be sold because the people that are running CNN right now are either corrupt or incompetent."

Both CEOs have done their best to gain favor with Trump, who has indicated he will oversee the approval of the media mega-deal. "That’s gotta go through a process, and we’ll see what happens," Trump told reporters at the Kennedy Center Honors on Dec. 7. "Netflix is a great company; they’ve done a phenomenal job. Ted is a fantastic man, I have a lot of respect for him... but it’s a lot of market share, so we’ll have to see what happens. I’ll be involved in that decision."