Kushner Fund Withdraws from Paramount Skydance's $108.4 Billion Bid

Affinity Partners, the private equity firm founded by Jared Kushner, said on December 16, 2025 that it was no longer participating as an equity investor in Paramount Skydance’s hostile bid for Warner Bros. Discovery, a transaction valued at roughly $108.4 billion. The move, disclosed to the public the day before, removes an investor that had reportedly committed about $200 million to the offer and amplifies scrutiny of the financing behind the all cash proposal.

In a statement circulated by multiple outlets, an Affinity spokesperson 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 dynamics of the investment have changed significantly since we initially became involved in October. We continue to believe there is a strong strategic rationale for Paramount's offer.” Affinity became attached to the financing in October and its exit follows Paramount Skydance’s formal tender offer, which is scheduled to expire on January 8, 2026.

Paramount Skydance’s proposed financing has relied on a combination of sovereign wealth, private capital and family backing. Aggregate commitments reportedly included about $24 billion from three Gulf sovereign wealth funds, a $1 billion commitment from Tencent, and involvement by David Ellison and his father Larry Ellison as part of the deal’s backstop narrative. Warner Bros. Discovery’s board has publicly questioned the solidity and transparency of those commitments, saying Paramount had “consistently misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family. It does not, and never has,” and the board unanimously rejected the hostile bid while reiterating support for a separate transaction with Netflix.

The Affinity withdrawal lands amid a crowded and fast moving contest for Warner Bros. Discovery. Paramount Skydance launched its hostile, all cash bid roughly a week before Affinity’s exit was reported, following WBD’s separate agreement to sell parts of the company to Netflix in a transaction reported at about $82.7 billion. The competing approaches have forced shareholders and advisers to weigh the trade offs between a larger cash tender and a strategic transaction backed by a major streaming player.

Market and policy observers said the episode underscores two interlocking risks for bidders reliant on large pools of sovereign and private capital. First, high reliance on a small number of large commitments can leave a financing package vulnerable if an investor withdraws. Second, foreign state involvement in marquee media assets invites heightened regulatory and political scrutiny at a time when national security considerations are increasingly salient in merger reviews.

Paramount Skydance now has options but little time. The company can revise its bid, seek replacement backers, or restructure commitments before its January deadline. For Warner Bros. Discovery shareholders and market participants, the central question is whether Paramount can restore confidence in the financing fast enough to compete with the Netflix agreement that the WBD board currently favors.