Warner Bros Discovery Takeover: Affinity Withdraws

Warner Bros Discovery takeover talks shifted on Dec. 16, 2025, when Affinity Partners, the investment firm linked to Jared Kushner, withdrew from the Paramount-led offer. Citing changed dynamics and competition from Paramount and Netflix, Affinity’s exit complicates Paramount’s path as the contest moves toward 2026.

Affinity Exits Paramount-Led Bid

Affinity Partners’ withdrawal removes a key backer from the Paramount/Skydance consortium, which had included Gulf sovereign-wealth funds from Saudi Arabia, Abu Dhabi, and Qatar, as well as private-equity firm Apollo. Affinity joined the group in October 2025. Warner Bros. Discovery’s board had previously questioned the reliability of the Gulf funds’ commitments, a concern that shadowed the consortium’s financing.

Deal Structure and Outlook

Paramount’s hostile bid values Warner Bros. Discovery at $108.4 billion including debt, structured as a $30-per-share tender offer. The board plans to reject the proposal and remains committed to a merger agreement with Netflix, which carries a $2.8 billion termination fee if canceled.

The tender offer expires Jan. 8, 2026. The bidding contest is expected to extend into next year, with Paramount facing several strategic options: increasing the offer, extending the tender period, pursuing litigation, or pressing the matter to shareholders. Netflix holds a contractual right to match any competing bids, influencing how other suitors may proceed.

Affinity’s departure tightens the financing picture for the Paramount-led effort and increases pressure on remaining backers to confirm firm commitments. This shift raises the likelihood of an extended duel for shareholder support and may prompt more aggressive tactics from bidders aiming to change the dynamics before contractual deadlines.