Second-richest global tycoon and his offspring manage to close $8 billion acquisition with Paramount Pictures
In a significant move for the entertainment industry, Skydance Media and Paramount Global have merged, creating a powerful new entity valued at approximately $8.4 billion. The merger marks a notable power shift, with David Ellison, CEO of Skydance and son of Larry Ellison, taking the helm as the new chair and CEO of the combined company, Paramount.
David Ellison, known for his work with critically acclaimed films such as "Her" and "Zero Dark Thirty" through Annapurna Pictures, is now at the forefront of one of the most significant entertainment portfolios. The merger will see Paramount operate through three main segments: studios, direct-to-consumer, and TV media.
While Larry Ellison, co-founder of Oracle and David's father, holds a significant but more passive stake, reports emphasize David Ellison's active operational control rather than Larry having a direct management role post-merger. This arrangement suggests that David has operational control and likely a larger share of voting power or effective control in decision-making, though precise share percentages are not publicly detailed.
The merger empowers David Ellison as the dominant leader of the combined entertainment empire, guiding its future growth and operational structure. Larry Ellison benefits financially and strategically through ownership stakes associated with the merger but does not appear to take a direct executive role.
The Federal Communications Commission (FCC) approved the $8 billion merger between Paramount and Skydance Media on Thursday. The changes in the voting rights were likely due to regulatory reasons and to benefit Larry Ellison financially. An amendment in October 2024 changed David Ellison's voting rights so that he holds 100% of the Pinnacle entities' voting interest, while his father kept the equity.
Oracle is reportedly in talks to have Paramount and Skydance run on the same Oracle-provided cloud technology, worth $100 million per year. David Ellison also made headlines for donating around $1 million to Joe Biden's reelection campaign in February 2024.
In addition, Ellison's Skydance had to make written commitments to embody "a diversity of viewpoints" and "adopt measures to root out bias" in its programming as part of the merger agreement. Paramount is also considering an overhaul of CBS, potentially seeded by Skydance's vow to end diversity, equity and inclusion programs.
The merger comes amidst speculation that David Ellison may be involved in a potential deal to buy TikTok, for which Trump has extended the sell-by date to September. Larry Ellison showed up at the White House to help Trump announce his $500 billion Stargate AI infrastructure initiative in January.
The merger between Skydance Media and Paramount Global marks a significant moment in Hollywood, with David Ellison set to guide the future of the combined entertainment empire.
The merger presents an opportunity for David Ellison to lead the future development of the entertainment industry, given his control over the combined entertainment empire. The Strategic alliance between Skydance Media and Paramount Global signifies a substantial shift in the power landscape of Hollywood, with David Ellison at the helm.
