The Shift in Power at Paramount
In July, the announcement of a significant takeover of Paramount sent ripples through the entertainment industry, with Skydance founder David Ellison positioned as the new figurehead leading the parent company of CBS and MTV. However, recent revelations suggest that the true power dynamics may be more complex than initially perceived.
A newly acquired document filed with the Federal Communications Commission (FCC) highlights that Larry Ellison, the prominent founder of Oracle and David’s father, will emerge as the dominant force behind the scenes, taking over from Shari Redstone as the company’s most influential shareholder. This document, which was obtained by The New York Times, illustrates an intricate organizational chart detailing the companies that will assume control over the majority of Paramount’s voting interest, previously held by Ms. Redstone.
According to the FCC filing, Pinnacle Media, an investment vehicle associated with the Ellison family, is set to acquire a staggering 77.5 percent of the voting interest that Ms. Redstone currently holds. The remaining stake will be allocated to an entity linked to RedBird Capital Partners, an investment firm that has thrown its weight behind Skydance.
While Larry Ellison’s financial support for his son’s ambitious $8 billion bid to take control of Paramount has been common knowledge, the specifics of his role within the corporate structure had not been clear until now. This raises intriguing questions about the future leadership dynamics within the company. As noted by Brian Quinn, a professor at Boston College Law School, “Maybe Larry Ellison will give David free rein. Perhaps, Larry will call all the shots, or maybe just the big shots. We just don’t know. It seems, however, that Larry Ellison will have ultimate control.”
