An unexpected name has been spotted in papers filed by Paramount Skydance for the potential hostile takeover of Warner Bros. Discovery — Jared Kushner, son-in-law of United States President Donald Trump, according to reports by Axios, Bloomberg and Fortune.
Notably, Paramount's hostile takeover bid aimed at beating streaming giant Netflix's offer for the legacy studio and streaming platform has brought together a rather impressive array of investors, lenders, and sovereign wealth funds.
Now, reports show that even as Donald Trump has raised “red flags” about the anti-trust concerns about the Netflix-Warner Bros deal, his son-in-law is part of the rival Paramount's hostile takeover bid.
How is Jared Kushner involved in Paramount's bid for Warner Bros?
According to Axios, citing regulatory filings, Jared Kushner's private equity fund, Affinity Partners, is among the participants in Paramount's hostile takeover bid for Warner Bros. Discovery.
The name is significant due to Kushner's close ties to Donald Trump, who confirmed to reporters that he will “personally” oversee antitrust concerns regarding the Netflix-Warner Bros. deal. And because Paramount's press release did not openly disclose Affinity's involvement in the $108 billion bid.
According to the Fortune report, since leaving his role in the US government, Jared Kushner's business dealings have seen him broker several billion-dollar transactions for Middle Eastern companies. In September, Jared Kushner made headlines for his participation in the $55 billion take-private agreement for gaming giant Electronic Arts, the report added. It is also the second time that Kushner has partnered with Saudi Arabia’s Public Investment Fund (PIF), according to a Bloomberg report. He “brokered” the initial talks, it added.
Does Paramount have the upper hand during govt scrutiny?
The Axios and Bloomberg reports added that the tender offer promises that each participant has “agreed to forgo any governance rights — including board representation — associated with their non-voting equity investments”.
The participants in Paramount's bid include Abu Dhabi’s L’imad Holding Company PJSC, Affinity Partners, Saudi PIF, and the Qatar Investment Authority (QIA). Bank of America Corp., Citigroup Inc. and Apollo Global Management Inc. are providing the debt commitment, according to filings.
Notably, China's Tencent, which was part of Paramount's initial bid for Warner Bros., has now dropped out of the deal.
However, it is not only the Kushner connection that Axios noted — Paramount is headed by David Ellison, the son of Larry Ellison, a close aide to Donald Trump. Speaking to reporters, the US President on 8 December sought to dismiss concerns over the connection, saying neither Paramount nor Netflix were “great friends” of his, BB added.
In terms of the deal itself, Paramount's bid comes in at $30/share, against Netflix's $27.75/share. Additionally, while Ellison's company is seeking the entirety of Warner Bros., Netflix is reportedly only interested in the studios and streaming business.
Key Takeaways
- Jared Kushner's private equity fund Affinity Partners is among the participants in Paramount's hostile takeover bid for Warner Bros Discovery.
- Paramount's press release did not openly disclose Affinity's involvement in the $108 billion bid.
- Kushner's involvement is significant given that he is Donald Trump's son-in-law, and the US President said he will “personally” oversee the Warner Bros deal.
