Larry Ellison to control Paramount Global after Skydance deal closes
Tech scion David Ellison intends to be the new chief executive of Paramount Global.
But it’ll be his father, Oracle Executive Chair Larry Ellison, who will be the controlling shareholder of the company, according to a recent filing with the Federal Communications Commission.
Assuming David Ellison’s Skydance Media entertainment firm gets the necessary regulatory approvals to complete its takeover of Paramount, Ellison family business entities collectively called Pinnacle Media will own 77.5% of National Amusements Inc., the Redstone family investment vehicle that controls the media company.
Pinnacle Media is owned by Larry Ellison through a variety of business entities, according to the FCC filing, which was submitted last week.
David Ellison’s acquisition of Paramount Global is just the start of a long journey to turn around the media and entertainment stalwart.
The remaining 22.5% of National Amusements will be owned by RB Tentpole, which is controlled by Gerry Cardinale’s private investment firm RedBird Capital Partners.
Paramount declined to comment on the document, which is nearly 450 pages long. A representative for Skydance did not immediately respond to a request for comment.
The filing was triggered by FCC rules requiring the prospective owners of Paramount to get federal approval to transfer control of the company’s licenses to operate its multiple CBS television stations.
The Ellisons and RedBird argue in the filing that their infusion of capital will “strengthen and revitalize” the broadcasting services Paramount currently provides, and that the deal “will not result in a diminution of competition or present any other harms” because the two parties do not currently own any other broadcast stations.
Rather than leading Paramount to reclaim its place among industry titans, Redstone’s tenure atop the company has been marred by miscalculations and setbacks.
Paramount’s board of directors and its current controlling shareholder, Shari Redstone, approved the $8.4-billion deal with Skydance in July, after months of back and forth.
Shortly after the deal was announced, David Ellison told investors and financial analysts that he intended to help Paramount evolve into a “media and technology company.” Part of those plans included improving the ad engine and algorithmic capabilities of streaming service Paramount+ and using artificial intelligence tools to “enhance creativity and drive production efficiencies.”
Last month, the deal briefly appeared to be in question as billionaire entertainment executive Edgar Bronfman Jr. made a last-ditch bid for the company, though he eventually bowed out of the process.
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