Jared Kushner drops Warner Brothers bid as WBD board backs Netflix deal
Dec 17, 2025
Key Points
- Jared Kushner withdraws Paramount's $108 billion hostile bid for Warner Brothers Discovery after Trump criticism, clearing the path for Netflix's acquisition.
- Warner Brothers' board rejects Paramount over financing gaps: the Ellisons failed to backstop their $40 billion equity commitment and refused to cover WBD's $2.8 billion Netflix termination fee.
- Without WBD's content library, the Ellison family lacks the scale to compete with Netflix despite owning CBS and the UFC.
Summary
Jared Kushner withdrew from Paramount's hostile bid for Warner Brothers Discovery hours after President Trump publicly criticized David Ellison's family over their treatment of CBS. The move ends Paramount's $108 billion takeover attempt and clears the path for Netflix to acquire WBD.
Warner Brothers' board formally backed Netflix in a shareholder letter Tuesday morning, citing superior terms and financing certainty. The letter attacked Paramount's offer on three fronts. The Ellison family failed to backstop the $40 billion equity commitment they had repeatedly promised, instead offering only an opaque revocable trust with no public disclosure of assets. Paramount refused to reimburse WBD's $2.8 billion termination fee to Netflix. Financing costs would fall on WBD shareholders if the deal doesn't close.
Netflix has already signed a definitive agreement with secured debt backing and a massive termination clause. Paramount's trust structure leaves WBD exposed because the trust assets are undisclosed and subject to change. The Ellisons could move money out without violating the letter of their commitment.
The collapse reveals how thoroughly the Ellison strategy depended on Warner Brothers. Since closing Paramount, the family has acquired CBS and the UFC and built a streaming platform, but all of it hinged on landing WBD's content library. Without it, they own premium assets but lack the scale and depth to compete with Netflix or traditional studios. WBD's board rejected a family that controls CBS and the UFC in favor of a counterparty with actual cash in hand.