Paramount Skydance Launches $108B Hostile Bid for Warner Bros. Discovery, Backed by Kushner and Arab Funds

NEW YORK CITY  (VINnews) — Paramount Skydance has launched a hostile $108 billion takeover bid for Warner Bros. Discovery, escalating a high-stakes battle in the media industry just days after Netflix emerged as the preferred buyer for the entertainment giant’s key assets.

The all-cash offer, valued at $30 per share, targets the entire Warner Bros. Discovery (WBD) company, including its Hollywood movie studios, CNN, HBO and other media properties. The bid, announced Monday, comes after WBD’s board on Friday selected a $72 billion deal with Netflix for its studio operations and streaming business, citing a faster close timeline of 12 to 18 months.

David Ellison, son of Oracle co-founder and Trump supporter Larry Ellison, leads the Paramount Skydance effort as its chairman and CEO. Ellison’s company completed an $8 billion acquisition of Paramount Global earlier this year with backing from his father and RedBird Capital Partners.

The proposed merger, with an enterprise value of $108.4 billion, would create a media powerhouse to challenge streaming dominance but has raised antitrust red flags from critics who warn it could consolidate too much control in Hollywood.

Buried Ties to Trump Family and Arab Investors

A Paramount Skydance press release touted the bid’s broad support but omitted key details about its financing, which were disclosed in a Securities and Exchange Commission filing. The offer draws significant backing from Jared Kushner’s Affinity Partners, the private equity firm founded by President Donald Trump’s son-in-law. Affinity has received substantial investments from Saudi Arabia’s Public Investment Fund.

Additional equity comes from sovereign wealth funds in three Arab monarchies: Saudi Arabia’s Public Investment Fund, Qatar’s Qatar Investment Authority and Abu Dhabi’s L’imad Holding Company PJSC, a government-owned entity. These partners collectively hold billions in ongoing ventures with the Trump family’s business interests, including real estate and investment deals.

The connections have fueled speculation about potential influence in the incoming Trump administration’s review of media mergers. On Sunday, Trump announced he would “be involved” in scrutinizing the Netflix-WBD deal, calling it “a problem” due to Netflix’s market dominance. Trump, who has long criticized CNN as “fake news,” added that neither bidder is a “friend of mine” but emphasized doing “what’s right.”

Ellison, in a CNBC interview, described “great conversations” with Trump about plans for a restructured news division at the combined company. He clarified he did not speak for Trump and noted no direct discussions with Kushner on the bid.

WBD Response and Next Steps

WBD’s board said it would “carefully” review the unsolicited offer but reaffirmed its recommendation for the Netflix transaction. Shareholders must be informed within 10 business days whether the board accepts or rejects the Paramount bid. Paramount claims its deal could close within 12 months, undercutting Netflix’s timeline.

Legal experts predict intense regulatory scrutiny, with antitrust watchdogs likely to probe the deal’s impact on competition in film production, streaming and news. “A Paramount Skydance-Warner Bros merger would be a five-alarm antitrust fire,” one U.S. regulator told Reuters.

The bidding war shines a light on the the turmoil in legacy media amid cord-cutting and streaming wars. Warner Bros. Discovery, formed in 2022 from the merger of WarnerMedia and Discovery, has struggled with $40 billion in debt and declining linear TV revenues.

Paramount Skydance shares rose 5% in after-hours trading Monday, while WBD dipped 2%. Netflix shares fell 3%, reflecting investor concerns over the disruption.

As the drama unfolds, the involvement of Trump allies and Gulf state funds adds a layer of geopolitical intrigue to what could reshape Hollywood’s power structure.