David Ellison’s Paramount Skydance Launches $108B Hostile Bid for Warner Bros After Netflix Deal: Kushner’s Affinity Partners, Middle East Funds, and Trump’s Neutral Stance

Yes — Paramount Skydance, led by David Ellison, has launched a hostile $108.4 billion all‑cash bid to acquire Warner Bros. Discovery (WBD). The move challenges the previously announced Netflix deal, injecting major uncertainty into Hollywood’s next chapter.

Key Takeaways

• Paramount Skydance’s bid values Warner Bros. at $30 per share, or about $108.4 billion total enterprise value — significantly higher than Netflix’s $82.7 b deal.
• The offer covers all of WBD, including film studios, streaming assets, and cable networks (like CNN, Discovery, etc.) — unlike Netflix’s narrower asset‑only deal.
• Financing comes from Ellison family capital plus external backers — including Affinity Partners (led by Jared Kushner) and sovereign‑wealth funds from the Middle East. They’ve agreed to forgo governance rights to ease regulatory approval.
• Paramount argues its cash offer provides “faster, more certain” closing. WBD’s board previously rebuffed private offers — hence this direct-to-shareholders move.

What Just Happened

The Hostile Bid Goes Public

On December 8, 2025, Paramount Skydance formally filed a hostile tender offer: $30 per WBD share, all cash. That values the entire company — studios, streaming services, cable networks, debt included — at around $108.4 billion.

This came just days after Netflix announced its own deal to purchase WBD’s studio and streaming arms for roughly $82.7 billion — a mix of cash and stock. Paramount’s bid seeks to undercut that by offering more cash, broader scope, and swifter execution.

Paramount’s leadership claims WBD’s board never gave serious consideration — six proposals over 12 weeks were ignored. So they shifted strategy: they are now going directly to shareholders, confident many will favor higher cash value.

Who’s Backing It — and Why It Matters

This isn’t a thinly funded play. The bid is backed by:

• The Ellison family (David Ellison’s father is tech billionaire Larry Ellison).
• Affinity Partners, a private equity firm led by former White House advisor Jared Kushner.
• Sovereign wealth funds from Saudi Arabia, Abu Dhabi, and Qatar.
• Major debt backing from institutions like Bank of America, Citigroup, and Apollo Global Management.

To avoid triggering foreign-investment scrutiny (notably by the U.S. Committee on Foreign Investment in the United States, CFIUS), these outside parties explicitly agreed to no board seats or governance rights.

Paramount frames the deal as pro‑shareholder and pro‑consumer: consolidated studios, streaming, cable under one roof. A bigger entity — but one they say can act faster, spend more on content, and support both theatrical and streaming output.

Why Netflix’s Deal Is in Trouble

Value, Speed, and Scope

Paramount’s pitch: Why wait over a year — and get only part of the company — when you can cash out now and own all of it? That logic appeals to many shareholders.

Political Climate & Regulatory Chess

There’s a sharp political angle. The Ellisons are close to major political influencers; Kushner’s involvement draws immediate attention. Some regulators and lawmakers (e.g., Elizabeth Warren) have already raised alarms about media consolidation.

Paramount claims the external investors’ lack of governance rights curbs national‑security concerns. Still, combining two massive media houses — including news networks and global cable assets — invites intense regulatory and public scrutiny.

Even supporters concede: the debt load after acquisition will be heavy. Paramount will need to deliver quickly on revenue, cost synergies, and content output to justify the price.

What Happens Next? The Race Clock Is Ticking

• The tender offer stays open until January 8, 2026, unless extended. That gives WBD shareholders a window to choose between the two offers.
• WBD’s board still officially favors Netflix’s deal. They argue the offer process was fair, and they view Netflix’s plan as more stable long-term. But shareholders may override that.
• Regulators (antitrust, national security) — especially in the U.S. — will scrutinize any deal involving cable networks, cross-ownership, foreign financing. Paramount is trying to pre-empt that with structural safeguards, but nothing is certain.
• If Paramount succeeds, the combined entity would become a mammoth — with control over huge libraries, studios, streaming, and cable — reshaping Hollywood’s power structure. If rejected, Netflix might still pay the breakup fee (~$5.8 b if deal collapses).

What It Means for You — Media Consumers and Industry Observers

• More consolidation. If Paramount wins, expect a wave of restructuring — some networks might be merged, content licensing strategies will shift, distribution priorities may change.
• Content diversity and pricing could shift. A single giant owning studios + cable + streaming can influence what content gets made, how it’s priced, and where it lands (theaters vs streaming).
• Regulatory precedent. How U.S. regulators handle this could shape future media deals globally. Successful approval might embolden further consolidation — failure could chill large-scale bids.
• Stock volatility. Shares of all companies involved — WBD, Paramount, Netflix — will remain wild for now. Investors will watch shareholder votes, regulatory signals, and public sentiment.

Common Questions (FAQ)