Larry Ellison, the megabillionaire founder of Oracle, will be the majority shareholder of National Amusements Inc., the company that controls Paramount Global, after the expected closing of the deal with Skydance Media — led by his son, David Ellison — next year, according to a regulatory filing.
It was understood that Larry Ellison would obtain a majority stake in NAI but now there’s official confirmation: He will own 77.5% of National Amusements through Pinnacle Media, a group of three ventures formed “as special-purpose vehicles to hold the Ellison family’s interest in NAI and Paramount,” according to an FCC filing, available at this link. The remaining 22.5% of NAI will be owned by Gerry Cardinale, head of private-equity firm RedBird Capital Partners, which teamed with Skydance and the Ellisons on the NAI/Paramount deal.
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The filing also reveals that Ellison and RedBird agreed to loan up to $277 million to NAI during the period prior to the deal closing. National Amusements is permitted to make one loan request during that time.
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The FCC filing disclosing the ownership stakes of NAI was required because the transaction involves the transfer of CBS’s 28 owned-and-operated local TV stations. The Skydance group’s filing with the FCC is an application requesting that the agency approve the transfer of control of television broadcast licenses. Bloomberg first reported on the filing.
On July 7, after months of on-again-off-again talks, Skydance and RedBird together with NAI and Paramount Global announced a binding agreement that will see the Skydance group buy the shares of Shari Redstone’s NAI (which owns 77% of the voting power in Paramount Global) and then merge with Paramount.
In the FCC filing, the Skydance group argued that the deal “will deliver significant public interest benefits by bringing to New Paramount an infusion of capital and a strengthened balance sheet, as well as a highly qualified leadership team with proven expertise in the broadcasting, media, and technology industries.”
“These new resources will substantially strengthen and revitalize the over-the-air television broadcasting services that Paramount provides today” with CBS, the Skydance group said in the filing. “At the same time, because the Ellison family and RedBird do not have attributable interests in any other television broadcast licensees, the Transaction will not result in a diminution of competition or present any other harms. Accordingly, the Commission should find that the Transaction is in the public interest and promptly grant this Application.”
Last month an investor consortium led by Edgar Bronfman Jr. entered a last-minute rival bid for Paramount, just days before the “go-shop” period under the Skydance agreement expired on Aug. 21 (prompting the Paramount board’s special committee to extend the negotiation window by 15 days). But last week, Bronfman announced the bidding group was exiting the deal process, paving the way for Skydance-RedBird deal to go forward.
Paramount Global properties include CBS, Paramount Pictures, cable networks like Comedy Central, MTV and BET, and streamers Paramount+ and Pluto TV. The media conglomerate currently expects the Skydance deal to close in the first half of 2025. David Ellison is set to become CEO of the combined Skydance-Paramount and Jeff Shell, ex-CEO of NBCUniversal and chairman of RedBird Sports & Media, will become president.
Ahead of the pending Skydance deal close, Paramount is making major layoffs amid revenue declines in its TV and film businesses. The company last month said it is cutting 15% of its U.S. workforce — eliminating about 2,000 jobs — through the end of 2024 as part of efforts to slash $500 million in yearly costs.
