After a fierce bidding war, tech mogul Larry Ellison will take over Paramount Global (PARA.US)
1min read The intense bidding war for Paramount Global (PARA.US) officially ended last week with Skydance buying the studio for over $8bn, ending a saga that saw Larry Ellison's son David lead a group that took over the Redstone empire.
Ellison's family special purpose entity Pinnacle Media will hold about 77.5% of National Amusements (NAI), the parent of Paramount, according to a filing with the US Federal Communications Commission.
One of the family entities that will control NAI is Sayonara, controlled by Larry Ellison's trusts. RedBird Capital Partners, the investor in Skydance Media, will hold the remaining 22.5%.
The two-step deal to buy Paramount ended last week with Skydance and its partners buying NAI for $2.4bn in cash, followed by a merger with Paramount and a $6bn investment to reduce the studio's debt.
Once the deal is complete, David Ellison will become the new Paramount's chief executive. Jeff Shell, who currently works for RedBird, will serve as president of the new company.
The deal will shift control of Paramount from one wealthy family to another led by technology magnate Larry Ellison, whose grandfather Sumner Redstone built the media empire.
Ms Redstone, daughter of Sumner, will receive $180m in severance and other benefits, in addition to about $350m from her sale of Skydance, according to people familiar with the matter.
