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Larry Ellison, the billionaire co-founder of Oracle and one of the richest individuals in the world, is set to gain significant control over Paramount Global following a merger led by his son, David Ellison. This $8 billion deal involves the acquisition of Paramount’s controlling shares, marking a major shift in ownership from the Redstone family to the Ellisons, backed by RedBird Capital Partners.
The merger, officially announced in July 2024, will see Larry Ellison’s investment vehicle, Pinnacle Media, acquire 77.5% of National Amusements, the entity that holds Paramount’s voting shares. RedBird Capital, led by Gerry Cardinale, will hold the remaining 22.5%. This division of ownership signals a change in the balance of power at Paramount, with Larry Ellison emerging as the most influential shareholder. Though David Ellison, CEO of Skydance Media, will take over operational control of the company, his father’s deep financial backing means that Larry is likely to retain significant influence over strategic decisions.
The takeover Is part of a broader effort to stabilize Paramount, which has been grappling with declining revenues and mounting debt. The Ellison-led consortium aims to rejuvenate the company by merging Skydance Media into Paramount and restructuring its operations. Paramount’s current shareholders will have the option to either sell their shares for cash or retain an equity stake in the newly restructured entity. A significant portion of the deal’s financing will also be used to reduce Paramount’s long-term debt, which has weighed heavily on the company’s performance in recent years.
While David Ellison will handle the daily operations as CEO, the behind-the-scenes role of Larry Ellison is generating considerable speculation. The elder Ellison’s financial backing and leadership in tech make him a dominant force in any business venture he supports. Industry experts believe he will have a hand in major decisions at Paramount, even if he refrains from day-to-day management. Brian Quinn, a professor at Boston College Law School, notes, “Perhaps Larry will call all the shots, or maybe just the big ones. It seems, however, that Larry Ellison will have ultimate control”.
This merger represents a historic transition of power from the Redstone family dynasty, which built Paramount into a media powerhouse under the leadership of Sumner Redstone, to the Ellison family. Shari Redstone, Sumner’s daughter, has been Paramount’s most influential shareholder for years, but her exit marks the end of an era for the company. The Redstone family has been integral to shaping the media landscape for decades, overseeing iconic brands such as CBS, MTV, and Nickelodeon. Now, with the Ellisons stepping in, the future direction of Paramount is likely to take on a new trajectory, blending Hollywood tradition with the strategic vision of Silicon Valley.
Larry Ellison’s move into media comes as he continues to expand his influence across industries. Best known for founding Oracle and playing a central role in the tech industry, he has gradually become a more prominent figure in entertainment, previously supporting his daughter, Megan Ellison’s company, Annapurna Pictures. His venture into Hollywood has been relatively quiet until now, but with this acquisition, he is set to become one of the most powerful figures in the media world.
As the dust settles from this merger, all eyes will be on how the Ellisons steer Paramount through the challenges ahead. The company faces fierce competition in the streaming market, with rivals like Netflix, Disney, and Amazon dominating the space. The new leadership will need to innovate and adapt to ensure Paramount’s continued relevance in an ever-evolving media landscape.
