Jared Kushner’s Affinity Partners is withdrawing from the takeover battle for Warner Bros. Discovery (WBD).
Affinity was helping to finance Paramount’s (PSKY) $30/share bid for Warner Bros. (WBD). The private equity firm now believes the dynamics of an investment have changed since it became involved in October, according to a Bloomberg report on Tuesday, which cited a representative for Affinity.
“With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity,” the representative said in a statement to media outlets. “We continue to believe there is a strong strategic rationale for Paramount’s offer.”
The Affinity news comes as reports that the board of Warner Bros. Discovery (WBD) plans to reject Paramount Skydance’s (PSKY) hostile takeover bid and stick to the original offer made by Netflix (NFLX).
Affinity’s investment in the Paramount (PSKY) was $200 million in equity, Bloomberg previously reported. The Affinity investment is noteworthy because Kushner is President Donald Trump’s son-in-law and Trump has indicated that he will weigh in on the approval process for a Warner Bros. transaction.