Larry Ellison is providing most of the funding for his son David Ellison’s Skydance Media merger with Paramount, TheWrap has learned.
Oracle’s founders and their families are contributing $6 billion to the deal, with private equity firm RedBird Capital Partners putting up the remaining $2 billion.
According to Forbes magazine, Larry is the fifth richest person in the world with a net worth of $180 billion.
Redbird founder Jerry Cardinale added that this is the company’s largest investment to date.
After on-and-off negotiations with Paramount, Skydance Media agreed on Sunday to merge with the storied studio in a deal that also included the acquisition of Shari Redstone’s National Amusements.
“It’s clear that technology companies are making a significant push into the media space,” Skydance CEO David Ellison told TheWrap during a media call on Monday, referring to Apple, Amazon and Netflix. “We believe the response to this is going to require traditional media companies like Paramount to expand into both media and technology companies.”
Skydance, whose hit films include box office smash hits “Top Gun: Maverick” and “Mission: Impossible: Dead Reckoning,” is planning a tech-first approach to transforming the established company by focusing on struggling streaming service Paramount+ and broadcasting giant CBS.
Redstone said in a press release that the deal will strengthen Paramount “for the future, ensuring that content remains king.”
“We are hopeful that this transaction with Skydance will position Paramount for continued success in this rapidly changing environment. As Paramount’s longtime production partner, Skydance understands Paramount well and has a clear strategic vision and the resources to lead Paramount into its next phase of growth,” she added. “We believe in Paramount and will continue to believe in it.”
The combined company will be valued at $28 billion and David will serve as CEO. He also told reporters on Monday that his first job was writing code for his father, whom he said he talks to “all the time.”
Another of Larry’s most recent investments is his support for 2023 Republican presidential candidate Tim Scott.
The news was first reported by Axios.
