Paramount’s hostile takeover bid filings for Warner Bros reveals ‘hidden’ name involved in deal — Jared Kushner
According to reports from Axios, Bloomberg and Fortune, Paramount Skydance will be selling to Warner Bros. An unexpected name has been spotted in the documents submitted for the hostile takeover of Discovery: Jared Kushner, son-in-law of United States President Donald Trump.
In particular, Paramount’s hostile takeover bid, aimed at beating streaming giant Netflix’s bid for the legacy studio and streaming platform, has brought together a pretty impressive array of investors, lenders and sovereign wealth funds.
Reports are now rife that Donald Trump is planning a Netflix-Warner Bros. It shows that his son-in-law was part of a hostile takeover bid from rival Paramount, despite raising “red flags” about anti-trust concerns about his deal.
Jared Kushner, Paramount’s Warner Bros. How does it fit into your bid for?
Jared Kushner’s private equity fund Affinity Partners is among those participating in Paramount’s hostile takeover bid for Warner Bros. Discovery, according to Axios, citing regulatory filings.
The name is significant because of Kushner’s closeness to Donald Trump, who confirmed to reporters that he would “personally” oversee antitrust concerns surrounding the Netflix-Warner Bros deal. And because Paramount’s press release didn’t explicitly disclose Affinity’s inclusion in the $108 billion bid.
According to a Fortune report, since leaving his position in the US government, Jared Kushner has seen himself brokering several deals in large billion-dollar transactions for Middle Eastern companies. The report also noted that Jared Kushner made headlines in September with his participation in gaming giant Electronic Arts’ $55 billion take-private deal. According to Bloomberg’s report, this is also the second time Kushner has contacted Saudi Arabia’s Public Investment Fund (PIF). The report stated that he mediated the initial negotiations.
Does Paramount have the upper hand in government scrutiny?
Axios and Bloomberg reports added that the tender offer promises that each participant “agrees to give up any management rights, including board representation, with respect to non-voting equity investments.”
Participants in Paramount’s bid include Abu Dhabi’s L’imad Holding Company PJSC, Affinity Partners, Saudi PIF and Qatar Investment Authority (QIA). Bank of America Corp., Citigroup Inc., according to filings. and Apollo Global Management Inc. provides debt commitment.
Specifically, Paramount’s Warner Bros. China’s Tencent, which was part of the initial bid for the company, has now withdrawn from the deal.
But it’s not just the Kushner connection that Axios noticed; Paramount is headed by David Ellison, son of Donald Trump’s close aide, Larry Ellison. BB added that on December 8, the US President tried to allay concerns about the tie-up by saying that neither Paramount nor Netflix were “very good friends”, he told reporters.
From a deal standpoint, Paramount’s offer comes in at $30/share versus Netflix’s $27.75/share; Netflix is also reportedly only looking for the studios and streaming business, while Ellison’s company is looking for the entirety of Warner Bros.
