The battle for control of Warner Bros. Discovery, which is one of the most storied names in global entertainment, has taken a decisive turn, reshaping what many see as a defining moment for the future of Hollywood.
What began as a historic showdown between old-guard studios and modern streaming giants has now narrowed, after Jared Kushner’s private equity firm, Affinity Partners, withdrew its backing from Paramount Skydance’s hostile takeover bid.
The move weakens Paramount’s challenge and strengthens Netflix’s position in a deal that could redraw the entertainment landscape for decades.
At stake is not just ownership of Warner Bros., but control over some of the most valuable intellectual property in film and television, and the direction of the media industry itself.
Kushner Exit Reshapes the Battlefield
Affinity Partners, the Miami-based investment firm founded by the U.S. president’s son-in-law, had been one of several financial backers supporting Paramount’s all-cash offer for Warner Bros. Discovery. Its withdrawal removes a politically significant and financially important pillar from Paramount’s bid.
“With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity,” a spokesperson for the firm said in a statement to NBC News. “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.”
Kushner’s involvement had drawn heightened scrutiny to the takeover battle due to his ties to President Donald Trump, turning what might have been a purely financial contest into a politically charged standoff. His exit now signals a shift in momentum.
Two Bids, Two Visions for Warner Bros.
The fight over Warner Bros. Discovery intensified in early December, when Netflix and WBD unveiled a negotiated agreement under which Netflix would acquire Warner’s film and television studios, HBO Max, and HBO.
The deal values Warner Bros. Discovery at approximately $82.7 billion in enterprise value, offering shareholders $27.75 per share in a mix of cash and stock. Crucially, it also preserves WBD’s planned separation of its Global Linear Networks business into a new entity, Discovery Global.
Days later, Paramount Skydance launched a dramatic counterattack.
Its unsolicited, all-cash hostile bid valued Warner Bros. Discovery at $108.4 billion, offering shareholders $30 per share. Paramount’s CEO, David Ellison, who is the son of Oracle founder Larry Ellison, argued the proposal provided superior value and greater regulatory certainty.
Paramount said its offer provided “a superior alternative to the Netflix transaction, which offers inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash.”
Board Signals Preference for Netflix
Despite the higher headline valuation offered by Paramount, reports from The Wall Street Journal and Bloomberg indicate that Warner Bros. Discovery’s board is preparing to urge shareholders to reject Paramount’s bid.
That preference was formalized when Netflix publicly welcomed the board’s recommendation.
“After careful review with independent financial and legal advisors, the WBD Board urged stockholders to approve the merger agreement with Netflix, which they believe offers a more certain and superior alternative for WBD stockholders,” Netflix said.
Ted Sarandos, Netflix’s co-CEO, added in the statement that Netflix remains committed to theatrical releases, stating the company is “fully committed to releasing Warner Bros. films in theaters, with a traditional window…”
Netflix Makes Its Case to Shareholders
In a detailed letter to Warner Bros. Discovery shareholders, Netflix laid out why it believes its offer is more secure and more executable than Paramount’s.
Netflix highlighted its financing certainty, lack of foreign sovereign wealth fund involvement, confidence in regulatory approval, and flexibility for WBD to continue executing its strategic separation of Discovery Global.
“Our deal structure is clean and certain, with committed debt financing from leading institutions. There are no contingencies, no foreign sovereign wealth funds, and no stock collateral or personal loans,” the company said. Other major points highlighted included their “confidence in regulatory approvals,” “less risk and greater flexibility for WBD stockholders,” and “fully negotiated agreement designed for execution.”
Netflix also pointed out its scale to a market capitalization exceeding $400 billion and what it described as the largest cash regulatory termination fee ever offered in a public M&A deal, which is 5.8 billion, as evidence of confidence.
Political and Regulatory Crosscurrents
The deal has attracted attention far beyond Wall Street.
President Donald Trump, when asked about Netflix’s bid, told reporters last week: “They have a very big market share. And when they have Warner Bros. that share goes up a lot. So I don’t know. That’s going to be for some economists to tell, and also, and I’ll be involved in that decision, too.”
Lawmakers have raised concerns about competition, while Paramount’s bid has drawn national security scrutiny due to the involvement of Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and the Abu Dhabi Investment Authority.
Any transaction will most likely require approval from the Department of Justice and the Federal Trade Commission. Meanwhile, Netflix is also facing a consumer class action lawsuit related to the deal.
Why Warner Bros. Matters So Much
The intensity of the battle reflects the unique value of Warner Bros. Discovery’s content library.
The studio’s portfolio spans generations, from The Wizard of Oz and Casablanca to Game of Thrones, The Sopranos, the DC Universe, Friends, The Big Bang Theory, and premium HBO originals like The Last of Us and House of the Dragon.
Netflix argues that combining Warner Bros.’ theatrical expertise, television studios, and HBO’s prestige brand with its own global streaming reach would be transformative, not just for shareholders, but for creators and consumers worldwide.
The Decision That Will Redefine Hollywood Power
With Kushner’s Affinity Partners stepping aside, Paramount’s hostile bid faces growing headwinds. Warner Bros. Discovery’s board has signaled its preference, but shareholders and regulators will ultimately decide the outcome.
Whether Warner Bros. becomes the crown jewel of the world’s largest streaming platform or remains an independent force reshaped through strategic separation, the outcome will mark a defining chapter in Hollywood history.
