Kushner’s Affinity withdraws from Warner Bros. takeover battle

Core Insights - Affinity Partners is exiting the takeover battle for Warner Bros. Discovery Inc., which is currently valued at $108.4 billion including debt, as it reassesses the investment dynamics [1][2] - Affinity's involvement in financing Paramount's hostile bid for Warner Bros. has been approximately $200 million in equity, but the firm has decided not to pursue the opportunity further due to the competitive landscape [2] - Warner Bros. is expected to reject Paramount's offer due to concerns regarding financing and other terms [2] Industry Impact - The outcome of the bidding war for Warner Bros. could significantly reshape the entertainment industry, enhancing Netflix's power over content distribution or allowing Paramount to consolidate its position against major competitors like Netflix, Walt Disney Co., and Amazon.com Inc. [3] - Both bids for Warner Bros. raise substantial antitrust concerns, highlighted by the multibillion-dollar breakup fees offered by the bidders [4] Financial Backing - Paramount's bid is supported by influential Middle Eastern investors, including Saudi Arabia's Public Investment Fund and the Qatar Investment Authority, indicating strong financial backing for the acquisition attempt [5] - Affinity Partners was founded in 2021 with funding from sovereign wealth funds in the Middle East, showcasing its connections to the region [5]