Paramount's filings show ‘hidden’ name in hostile takeover bid for Warner Bros

Paramount's hostile takeover bid filings for Warner Bros reveals ‘hidden’ name involved in deal — Jared Kushner

An unexpected name has been spotted in papers filed by Paramount Skydance for the hostile takeover for Warner Bros. Discovery — Jared Kushner, son-in-law of United States President Donald Trump, according to reports by Axios, Bloomberg and Fortune.

Notably, Paramount's hostile takeover bid aimed at beating streaming giant Netflix's offer for the legacy studio and streaming platform, has brought together a rather impressive array of investors, lenders, and sovereign wealth funds.

Now, reports show that even as Donald Trump has raised “red flags” about the anti-trust concerns about the Netflix-Warner Bros deal, his son-in-law is part of the rival Paramount's hostile takeover bid.

How is Jared Kushner involved in Paramount's bid for Warner Bros?

According to Axios citing regulatory papers, Jared Kushner's private equity fund Affinity Partners is among the participants in Paramount's hostile takeover bid for Warner Bros Discovery.

The name is significant due to Kushner's closeness to Donald Trump, who confirmed to reporters that he will “personally” oversee antitrust concerns over the Netflix-Warner Bros deal. And because Paramount's press release did not openly disclose Affinity's involvement in the $108 billion bid.

According to the Fortune report, since leaving his US government role, Jared Kushner's business dealings have seen him broker several deals for Middle Eastern companies in large billion-dollar transactions. In September, Jared Kushner made headlines for his participation in the $55 billion take-private agreement for gaming giant Electronic Arts, the report added. It is also the second time that Kushner has tied with Saudi Arabia's Public Investment Fund (PIF), as per a Bloomberg report. He “brokered” the initial talks, it added.

Does Paramount have the upper hand during govt scrutiny?

The Axios and Bloomberg reports added that the tender offer promises that each participant has “agreed to forgo any governance rights — including board representation — associated with their non-voting equity investments”.

The participants in Paramount's bid includes Abu Dhabi's L'imad Holding Company PJSC, Affinity Partners, Saudi PIF, and the Qatar Investment Authority (QIA). Bank of America Corp., Citigroup Inc. and Apollo Global Management Inc. are providing the debt commitment, according to filings.

Notably, China's Tencent which was part of Paramount's initial bid for Warner Bros., has now dropped out of the deal.

But it is not only the Kushner connection that Axios noted — Paramount is headed by David Ellison, son of Larry Ellison, a close aide of Donald Trump. Speaking to reporters, the US President on 8 December sought to dismiss concerns over the connection, saying neither Paramount nor Netflix were “great friends” of his, BB added.

In terms of the deal itself, Paramount's bid comes in at $30/share against Netflix's $27.75/share; also, while Ellison's company is looking for the entirety of Warner Bros, Netflix is reportedly only looking for the studios and streaming business.

Source: LiveMint
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