Skydance Media recently updated its filing with the FCC, confirming that CEO David Ellison will control 100% of the Ellison family’s voting interests in the merged Skydance-Paramount entity. As outlined in the amended filing, Ellison will serve as chairman and CEO of "New Paramount," overseeing combined Skydance and Paramount Global assets after the transaction closes, expected in the first half of 2025. Ellison is also designated as the sole manager of the family’s entities — Hikouki LLC, Furaito LLC, and Aozora LLC — through which they will control National Amusements Inc., the current controlling shareholder of Paramount Global, and New Paramount.
This amendment follows initial details indicating Oracle co-founder Larry Ellison, David Ellison’s father, would hold a 77.5% ownership of National Amusements through a trust and corporate series, with the remaining 22.5% owned by Gerry Cardinale’s RB Tentpole LP, affiliated with RedBird Capital Partners. Larry Ellison, currently the fifth-richest person in the world, is contributing $6 billion to fund the Skydance deal, with RedBird backing the balance.
Under the Skydance transaction, New Paramount’s enterprise value is set at $28 billion, while Skydance is valued at $4.75 billion. National Amusements will receive $2.4 billion — $1.75 billion in equity and $650 million in debt assumption — and non-NAI shareholders will receive $4.5 billion. Additionally, $1.5 billion in new capital will help reduce Paramount’s long-term debt of $14.6 billion and support a balance sheet recapitalization.
Class A shareholders may choose to receive $23 per share in cash or 1.5333 shares of Class B stock of New Paramount, while Class B shareholders can elect $15 per share in cash or one share of Class B stock, with proration applied if the cash elections exceed $4.3 billion. Current public shareholders of Paramount who opt for Class B non-voting shares instead of cash will hold around 28.3% of these shares in New Paramount, assuming full participation in cash elections by Class B shareholders. If share elections reduce cash needs below $4.3 billion, the allocation for Paramount’s balance sheet could increase to as much as $3 billion.
The initial FCC filing indicates the new ownership group’s commitment to “preserve and enhance the legacy” of CBS, its 28 owned and operated stations, and to ensure diverse, independent content across news, sports, and entertainment. "With an improved balance sheet, new Paramount will be able to make strategic investments in the legendary newsgathering and reporting efforts of the national CBS television network and the company’s O&O local stations. These investments will ensure that both the national network (which reaches all television markets) and the O&Os will continue to serve as trusted sources of news,” the filing stated. “The investment in the CBS television network similarly will help ensure popular live sports and highly rated entertainment programming remain available to viewers over-the-air and will benefit CBS affiliate stations.”
Once the transaction concludes, National Amusements’ board will initially have up to seven members, with the Ellison family holding voting control. The family, through Pinnacle Media entities, may appoint up to five board members as long as they retain at least 50% of NAI’s share capital post-transaction, while RB Tentpole can appoint up to two members.
Both the Ellisons and RedBird have the right to veto NAI’s annual budget and executive appointments, except for David Ellison’s role as CEO.
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