Oracle Co-Founder Larry Ellison Set to Take Control of Paramount Global in Landmark Acquisition

Oracle Co-Founder Larry Ellison Set to Take Control of Paramount Global in Landmark Acquisition

Edited by: TJVNews.com

In a major shift for the media and entertainment industry, tech billionaire Larry Ellison, co-founder of Oracle and one of the world’s wealthiest individuals, is poised to take control of CBS parent company Paramount Global, according to a report in The New York Post. This follows Skydance Media’s acquisition of the Redstone family’s interest in the company, marking the end of a media dynasty that has spanned decades.

Ellison, with an estimated net worth of $176 billion, will control 77.5% of National Amusements, the controlling shareholder of Paramount Global, through a trust and series of corporations, according to a regulatory filing with the U.S. Federal Communications Commission (FCC), as was reported by The Post. Skydance Media, the film and television production company headed by Larry Ellison’s son, David Ellison, signed a deal in July to acquire Paramount Global through a two-step process. This move solidifies the Ellison family’s influence in Hollywood and shifts the control of one of the most iconic American media companies from the Redstone family to the Ellisons.

David Ellison, CEO of Skydance Media, will assume the position of chairman and CEO of Paramount Global upon the completion of the acquisition. David, already a prominent figure in the entertainment industry through his leadership of Skydance, will have operational control of the business, as confirmed by a spokesperson for Skydance, as per the information provided in The Post.  Under his leadership, Paramount is expected to undergo significant changes, especially in terms of cost-cutting and strategic direction.

Skydance’s acquisition of Paramount Global is backed by Larry Ellison’s immense financial resources. With his status as the fourth richest person in the world, Ellison’s financial muscle is key to the success of the deal. The report in The Post said that his $6 billion investment into Paramount will help acquire shares and reduce the company’s mounting debt, positioning the Ellisons and their partners, including RedBird Capital Partners, to steer the future of the media giant.

The acquisition of Paramount Global, which owns major networks such as CBS, Nickelodeon, MTV, and Comedy Central, represents a significant shift in ownership. The deal involves the purchase of National Amusements, the holding company through which the Redstone family has long controlled Paramount. The Ellisons and RedBird Capital Partners will buy National Amusements for $2.4 billion, cementing their majority stake in Paramount’s controlling shareholder.

Upon the completion of the acquisition, David Ellison’s Skydance Media will hold 77.5% of National Amusements, while RedBird Capital, led by founder Gerry Cardinale, will hold the remaining 22.5%, The Post reported. This acquisition not only marks a significant consolidation of power within the entertainment industry but also brings sweeping financial changes to Paramount Global.

David Ellison and his financial partners, which include Jeff Shell, the former NBC Universal boss, are planning to implement a $2 billion cost-cutting initiative at Paramount. This signals an intention to restructure the company, streamline its operations, and position it for greater profitability. According to the information contained in The Post report, Shell, who was ousted from NBC Universal after admitting to an inappropriate relationship with former CNBC anchor Hadley Gamble, is set to become the president of Paramount once the merger closes, despite the controversies surrounding his exit.

The acquisition of Paramount Global by Skydance Media and the Ellison family marks the end of a long chapter for the Redstone family, who have controlled the company for decades. Shari Redstone, the daughter of media magnate Sumner Redstone, orchestrated the merger of CBS and Viacom in 2019, bringing together her father’s companies that had split in 2006, The Post report confirmed. Under her leadership, Paramount Global reemerged as a powerful force in the media landscape, but the sale signals the conclusion of her family’s direct involvement in the company’s future.

As part of the deal, Shari Redstone will receive $180 million in severance and other benefits, along with millions more from the sale of her stock in National Amusements. Her departure from the helm of Paramount Global marks a significant moment in the history of the company, which had been synonymous with the Redstone name for more than half a century.

Despite the sweeping changes expected at Paramount Global, Larry Ellison and his son David have made it clear that they intend to preserve the legacy of the CBS network and Paramount’s storied history in film and television, The Post report said. According to the FCC filing, the Ellisons are committed to “preserving and enhancing” the legacy of CBS, a network that has been a cornerstone of American broadcasting for decades.

With the financial backing of Larry Ellison and the creative and operational leadership of David Ellison, Paramount Global is poised for a new era. The Ellisons’ involvement in Hollywood, particularly through Skydance Media, has already yielded major successes in both film and television, including blockbusters like Mission: Impossible and Top Gun: Maverick, The Post reported. This new acquisition provides the Ellison family with an even greater platform to influence the entertainment industry.

A key player in the acquisition is RedBird Capital Partners, led by Gerry Cardinale. RedBird will own 22.5% of National Amusements through its limited partnership RB Tentpole LP. The report added that RedBird has been a significant partner in the deal, and the combined financial might of the Ellisons and RedBird will provide Paramount with the resources needed to manage its debt and invest in future growth.

The $2 billion cost-cutting plan, which will be overseen by David Ellison and his partners, is a central part of the strategy moving forward. The financial overhaul is expected to streamline Paramount’s operations and make it more competitive in an industry that has been rapidly changing due to the rise of streaming services, shifting consumer behaviors, and technological advancements.

Under the new leadership of David Ellison and backed by Larry Ellison’s considerable resources, Paramount Global is likely to see a period of transformation. The focus on cost-cutting suggests that operational efficiencies will be a priority, but the Ellisons’ vision also includes investing in content creation and technological innovation to keep Paramount relevant in a competitive entertainment landscape.

While the Redstone family’s direct involvement may be ending, the Ellisons’ stewardship of Paramount Global promises to preserve its legacy while steering the company toward a more modern, financially stable future. With the film and television industry in a state of flux, the Ellisons’ control of Paramount could set the stage for new innovations in content creation, distribution, and global media strategy.