Larry Ellison, the billionaire founder of Oracle, is poised to become the majority shareholder of National Amusements Inc. (NAI) and, consequently, Paramount Global, following the anticipated closing of a major deal with Skydance Media, as detailed in a recent regulatory filing.
Ownership Structure Post-Deal
Upon completion of the transaction, which is expected in the first half of 2025, Larry Ellison will control 77.5% of National Amusements through Pinnacle Media, a consortium established to manage the Ellison family’s stake in NAI and Paramount. The remaining 22.5% of NAI will be held by Gerry Cardinale, the head of RedBird Capital Partners, who, alongside Skydance and the Ellisons, has been instrumental in the deal.
Regulatory Approval and Strategic Benefits
The Federal Communications Commission (FCC) filing, which outlines these ownership changes, is necessary due to the transfer of CBS’s 28 owned-and-operated local TV stations. Skydance’s application to the FCC seeks approval for the shift in control of these television broadcast licenses. According to the filing, the Skydance-led consortium argues that the merger will inject significant capital into the newly formed Paramount, thereby enhancing its financial stability and media capabilities.
The filing emphasizes that this deal will bolster Paramount’s over-the-air broadcasting services and ensures that the merger will not diminish competition, given that neither the Ellison family nor RedBird has stakes in other television broadcasters.
Recent Developments
This announcement follows a recent rival bid led by Edgar Bronfman Jr., which was presented just before the “go-shop” period under the Skydance agreement ended on August 21. The bid prompted an extension of the negotiation period by 15 days. However, Bronfman’s group has since withdrawn, clearing the path for the Skydance-RedBird deal to proceed.
Paramount’s Current Challenges
Amid these developments, Paramount Global is undergoing significant restructuring. The company recently announced it would cut approximately 2,000 jobs, or 15% of its U.S. workforce, by the end of 2024 as part of a broader strategy to reduce annual costs by $500 million. This workforce reduction comes in response to declining revenues across Paramount’s TV and film divisions.
Leadership Changes Ahead
Once the deal is finalized, David Ellison, currently leading Skydance Media, will step in as CEO of the combined entity, while Jeff Shell, the former CEO of NBCUniversal and current chairman of RedBird Sports & Media, will assume the role of president.
Paramount Global’s assets include CBS, Paramount Pictures, cable networks such as Comedy Central, MTV, and BET, and streaming services like Paramount+ and Pluto TV. The impending merger is set to reshape the media landscape, positioning Ellison and his associates as major players in the industry.
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