Gerry Cardinale's RedBird Shapes New Paramount Era With 22.5% Stake

RedBird Capital’s $2 billion investment in the Skydance-led acquisition of Paramount Global has positioned Gerry Cardinale as a central figure in Hollywood’s new ownership era. The $8.4 billion merger, finalized on Thursday, marks a pivotal transition of power from Shari Redstone to the Ellisons—David and Larry Ellison—while embedding Cardinale’s private equity-driven strategy into the new regime. RedBird now holds 22.5% of Paramount’s voting rights, with David Ellison controlling 50% and Larry Ellison the remaining 27.5%. The new leadership includes two high-ranking executives from RedBird: Jeff Shell as President and Andy Gordon as COO, signaling the firm’s direct influence in operational decision-making [1].

The deal reflects a broader trend of private equity involvement in entertainment, with Cardinale’s RedBird taking the lead with its largest stake to date. Known for his Wall Street background and disciplined approach to asset management, Cardinale describes his firm as an “IP monetization engine,” emphasizing cost efficiency and long-term value from intellectual property [1]. The strategy, which has been applied to sports franchises like AC Milan and media ventures including the Telegraph and SpringHill, is now being extended to Paramount’s vast library of films, TV shows, and brand assets [1].

Cardinale’s rise as a Hollywood kingmaker is rooted in a decades-long career of high-stakes investments. From his early days at Goldman Sachs to founding RedBird in 2014 with $665 million in initial capital, he has consistently pursued opportunities where IP can be leveraged for scalable returns. His earlier success with YES Network—helping the Yankees monetize their own content—demonstrates a track record of identifying and capitalizing on dislocations in media and sports ecosystems [1].

The Paramount acquisition follows a pattern of strategic cost-cutting and restructuring. Over the past 19 months, the company has undergone significant layoffs, parted ways with top executives, and settled high-profile legal disputes, including a $16 million settlement with Donald Trump. These actions, along with promises of an additional $2 billion in cost savings, reflect a hardline approach to profitability [1]. While this aligns with private equity principles, it has also drawn criticism from industry observers who question whether such austerity might undermine creative output [1].

Despite the challenges, Cardinale remains confident in the long-term potential of premium IP, particularly in a shifting media landscape dominated by streaming. “We should be able to make movies for half the cost,” he previously stated, indicating a commitment to operational efficiency [1]. This strategy is supported by his earlier investments in Skydance, where RedBird led a $275 million capital raise in 2020 and an additional $400 million in 2022 [1].

The road ahead for Paramount, now a Skydance Corporation, is fraught with challenges. A declining linear TV market, aggressive competition in streaming, and a workforce affected by multiple rounds of layoffs will test the leadership’s ability to balance fiscal discipline with creative innovation. Cardinale’s model—focusing on platform value and adaptability—will be key to ensuring the company’s survival in an era where audience habits and business models are constantly evolving [1].

Sources:

[1] RedBird Capital’s $2 billion power play: Meet Gerry Cardinale, the private equity kingmaker behind the Paramount–Skydance deal (https://fortune.com/2025/08/09/paramount-skydance-redbird-capital-gerry-cardinale-ellisons/)