Fox & Friends’ first co-host Todd Piro and entertainment attorney Seth Berenzweig break Netflix and Paramount’s bidding war over Warner Bros. purchase Discovery and President Donald Trump’s growing input and further emphasis on C sales.
A private equity firm owned by President Donald Trump’s son-in-law Jared Kushner on Tuesday withdrew its financial support from Paramount’s $108 billion hostile takeover bid to buy Warner Bros. to take over Discovery.
Earlier this month, Paramount launched an all-cash offer, funded in part by Kushner’s private equity firm Affinity Partners, to acquire the outstanding shares of Warner Bros. Discovery for $30.00 per share in cash, just days after Netflix agreed to acquire Warner Bros. Discovery in a deal valued at $27.75 per share.
“With two strong competitors vying to secure the future of this unique American asset, Affinity has decided to no longer pursue this opportunity,” the company said, according to The Associated Press. “The dynamics of the investment have changed significantly since we first became involved in October. We continue to believe there is a strong strategic rationale for Paramount’s bid.”
While the amount Affinity contributed to Paramount’s bid was not disclosed in the latest SEC filings, the bid is still backed by wealth funds controlled by three governments, commonly known as Saudi Arabia, Abu Dhabi and Qatar, according to AP.
PARAMOUNT AND NETFLIX Face Similar Antitrust Hurdles Over WARNER BROS DISCOVERY BIDS, EXPERT SAYS
A private equity firm owned by President Donald Trump’s son-in-law, Jared Kushner, on December 16 withdrew its financial support from Paramount’s $108 billion hostile takeover bid to acquire Warner Bros. to take over Discovery. (Alex Wong/Getty Images/Getty Images)
Kushner’s involvement in the Paramount bid was previously criticized by Sen. Bernie Sanders, I-Vt., who accused Trump of embracing “authoritarianism” after learning that the president’s son-in-law had helped promote the hostile takeover bid.
Although Paramount’s proposal for all Warner Bros. Discovery, the Netflix deal would leave out cable assets, including CNN.
Before Paramount announced its offer, Trump said he would play a role in the proposed takeover of Netflix, telling reporters at the White House last week that it was “imperative” that CNN be part of any sale of the Warner Bros. franchise. Studios.
SENATE PREPARE FOR ‘INTENSIVE’ ANTITRUST HEARING IN WAKE OF NETFLIX, WARNER BROS DEAL
President Donald Trump has raised antitrust concerns about Netflix’s proposed acquisition of Warner Bros. Discovery. (Dado Ruvic/Illustration/Reuters / Reuters)
In August, Paramount owner David Ellison acquired Paramount as part of its $8 billion merger with Skydance Media, a deal that was plagued by politics as Paramount settled Trump’s lawsuit against the company over election interference over CBS News’ handling of the “60 Minutes” interview with then-Vice President Kamala Harris.
On Tuesday, Trump criticized the leadership of “60 Minutes” and CBS, claiming he was treated fairly under the company’s new leadership.
“For those who think I have a close relationship with the new owners of CBS, please understand that ’60 Minutes’ has treated me much worse since the so-called ‘takeover’ than they have ever treated me before. If they are friends, I would hate to see my enemies!” Trump wrote on Truth Social.
Trump has also raised antitrust concerns regarding the proposed Netflix deal, warning that the combined market share could be a problem.
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Paramount CEO David Ellison announced a hostile takeover bid for Warner Bros. on December 8. Discovery. (Charly Tribelleau/AFP via Getty Images/Getty Images)
