The private equity firm owned by President Donald Trump’s son-in-law, Jared Kushner, is no longer backing Paramount’s hostile bid to buy Warner Bros. Discovery, the company confirmed on Tuesday.

Days after Warner agreed to be acquired by Netflix in early December, Paramount launched a competing bid which seeks to bypass Warner’s management and go directly to its more cash-strapped shareholders. Paramount is offering US$30 per Warner share for Netflix’s US$27.75.

Warner, one of the “big five” Hollywood studios, owns Warner Bros. Pictures, HBO, the DC Comics universe and the Harry Potter franchise. Experts say its acquisition could bolster the winning company and reshape the streaming wars, either by catapulting Netflix further ahead of top competitors or cementing a new power player in Paramount.

Paramount, which is significantly smaller than Netflix, said it came to its decision to bypass Warner’s top executives after they “never meaningfully engaged” in several of the company’s earlier offers.

Paramount publicly announced the details of its new offer and gave Warner shareholders the option to tender their shares – selling them outright at a certain price – in support of their offer. The company is offering to buy Warner’s entire portfolio, including cable networks like CNN that Netflix has cut out of its bid.

WATCH | What Trump said about competing offers for Warner Bros. Discovery:

Paramount launches hostile takeover bid for Warner Bros.

Paramount Skydance has made a hostile takeover bid for Warner Bros. Discovery for US$108 billion just days after Netflix announced it had struck a US$72 billion deal with the legacy studio. It’s a move that even US President Donald Trump has.

In its appeal to shareholders, Paramount argued that its offer was more likely to pass regulatory scrutiny from the Trump administration.

The president said the Warner-Netflix deal “could be a problem” because of the size of their combined market share.

Kushner’s decision to withdraw his company’s financial support takes away a possible advantage for Paramount to win over Trump. The amount Kushner’s Affinity Partners contributed to the bid was not disclosed in Paramount’s most recent filings with the SEC.

“With two strong competitors vying to secure the future of this uniquely American asset, Affinity has decided not to pursue this opportunity any further,” the company said in a statement. “The investment dynamic has changed significantly since we first got involved in October. We continue to believe there is a strong strategic rationale for Paramount’s bid.”

Paramount’s bid is still backed by the wealth funds run by three governments in the Persian Gulf, such as Saudi Arabia, Abu Dhabi and Qatar.

Paramount, which owns CBS, MTV and the streaming service Paramount+, has recently been headed by David Ellison, the son of a major Trump donor, Larry Ellison. But Trump recently criticized the Ellisons for their treatment of CBS News 60 minutes.

“If they are friends, I would hate to see my enemies!” Trump said Tuesday at the Truth Social.

Warner is considering Paramount’s offer and is expected to tell shareholders soon whether it’s a better deal than selling to Netflix.