Paramount Merger: A New Beginning for Skydance Media.

Skydance Media has completed its purchase of Paramount, with David Ellison aiming to revive the struggling media company. Paramount's stock has dropped 75% over the past decade due to legacy media issues, but new shareholders may benefit from Ellison's revitalization efforts.

On Thursday, Skydance Media finalized its $8.4 billion acquisition of Paramount Global, marking a significant shift in the entertainment industry. David Ellison, the founder of Skydance, will serve as the new CEO of the combined entity, with his father, Oracle co-founder Larry Ellison, taking a substantial stake in the company. The deal is the largest in the entertainment and media sector this year, according to Yahoo Finance [1].

The acquisition was led by RedBird Capital, with Gerry Cardinale playing a pivotal role. RedBird holds 22.5% of Paramount's voting rights, while David and Larry Ellison control 50% and 27.5%, respectively. Several RedBird executives, including Jeff Shell as President and Andy Gordon as COO, have joined Paramount's leadership team [1].

Under the new ownership, Paramount is expected to pursue aggressive cost-cutting measures. Ellison has pledged an additional $2 billion in savings, following layoffs and the cancellation of high-profile shows like "The Late Show with Stephen Colbert" [1]. The company has also settled a $16 million lawsuit with former President Donald Trump [1].

The market faces significant challenges, including declining linear TV revenues and fierce competition in the streaming sector. However, Paramount's extensive library of over 1,200 films and distribution rights provides a solid foundation for Cardinale's strategy of monetizing intellectual property efficiently [1].

Cardinale, a former Goldman Sachs banker, has built a $12 billion private equity empire with investments in sports and entertainment. His approach focuses on acquiring premium assets and optimizing their value—a model Paramount will now test [1]. "We should be able to make movies for half the cost," Cardinale told Puck [1].

As Paramount navigates an evolving media landscape, the success of its new leadership will hinge on balancing fiscal discipline with creative innovation. The company faces questions about how to manage linear decline, handle Donald Trump, and more. The deal's backers, the Ellisons and RedBird Capital Partners, have deep pockets that could fund additional transformative deals in areas like tech or gaming [2].

Many questions lie ahead, including how its streaming strategy will play out, what the company might keep and buy, and how it'll navigate potential political headwinds. Paramount is attractive for its new senior management that's well-liked, massive pool of capital, and willingness to look at different structures for the streaming business [2].

References:
[1] https://www.indexbox.io/blog/paramount-global-and-skydance-media-complete-84-billion-merger/
[2] https://www.businessinsider.com/paramount-skydance-david-ellison-deal-done-key-questions-answers-2025-8