Paramount Skydance Launches $108 Billion Bid for Warner Bros Discovery Backed by Middle Eastern Sovereign Funds and Jared Kushner
Paramount Skydance has initiated a $108 billion takeover bid for Warner Bros Discovery, the parent company of Warner Bros, CNN, and HBO. The financing for this substantial deal includes contributions from Jared Kushner's Affinity Partners along with sovereign wealth funds from Saudi Arabia, Qatar, and the United Arab Emirates. These three entities have pledged approximately $24 billion, representing roughly 60% of the $40.7 billion equity portion of the bid.
Paramount has stated that the foreign funds involved will waive governance rights. Nevertheless, the Committee on Foreign Investment in the United States (CFIUS) is expected to review the transaction for potential foreign control and national security implications. The bid has prompted caution from Democrats such as Elizabeth Warren, who have called for a fact- and law-based review, wary of foreign influence in the acquisition.
Jared Kushner's participation in this deal adds another layer of scrutiny, given his role as a de facto diplomat during the Trump administration, having brokered ceasefire talks in Gaza and negotiations related to Ukraine. Operating as a private citizen with direct access to the president, Kushner's involvement raises concerns about overlaps between private business ventures and government interests.
In addition to this bid, Kushner is engaged in a separate $55 billion deal involving the Saudi sovereign wealth fund to acquire Electronic Arts, which is also under review by CFIUS. Past Saudi investments in U.S. sports, such as LIV Golf, have attracted congressional examination.
If Paramount succeeds in its acquisition, it could result in a shift in CNN's ownership towards interests aligned with former President Trump. The ownership of Paramount is controlled by the Ellison family. In a related strategic move, Paramount has worked to influence CBS News by acquiring Bari Weiss's Free Press for $150 million and appointing Weiss as editor-in-chief of CBS News.
