(Bloomberg) — Paramount Global, the parent of CBS, will be controlled by software billionaire Larry Ellison after a group led by his son David completes its purchase of the Redstone family’s interest in the film and TV company, according to a regulatory filing.
Most Read from Bloomberg
Ellison, the co-founder of Oracle Corp., is backing his son’s proposal to buy the Redstone’s National Amusements Inc. and take control of Paramount for more than $8 billion. According to a filing with the US Federal Communications Commission, the older Ellison will own 77.5% of National Amusements through a trust and series of corporations.
The filing is required because the sale of Paramount will involve the transfer of broadcast licenses. Paramount owns the CBS television network and a number of TV stations. A spokesperson for the FCC declined to comment on the filing.
Paramount has agreed to be acquired in a deal led by David Ellison and his Skydance Media, an independent film and TV company. The Ellisons, and their partner, RedBird Capital Partners, have agreed to buy National Amusements for $2.4 billion and invest more than $6 billion to acquire Paramount shares and reduce the company’s debt.
The rest of National Amusements will be owned by private equity investor Gerry Cardinale, the founder of RedBird. He is listed as the controlling person of RB Tentpole LP, a partnership that will own 22.5% of National Amusements if the deal goes through, according to the filing.
Paramount, which also owns cable networks including MTV and Nickelodeon, agreed to be acquired by the Ellison family and RedBird in early July. As part of the deal, Skydance Media will merge into Paramount.
David Ellison is to serve as Paramount’s chairman and chief executive officer, according to the filing. He will have operational control of the business, according to a spokesperson for Skydance.
Larry Ellison is a major donor to Republican super PACs, and his politics raise concerns about using Paramount as a vehicle for conservative causes, said Jeff Chester, executive director of the Center for Digital Democracy, a Washington-based advocacy group.
“There must be guarantees of journalistic and editorial independence from the station group and related video services,” Chester said in an email.
The FCC approves changes in ownership of broadcast TV stations. The filing says the new owners intend to “preserve and enhance the legacy” of the CBS TV network and the company’s 28 owned and operated local stations.
(Updates with advocacy group’s comment in third-to-last paragraph.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
