Billionaire Larry Ellison ponied up the cash for his household to amass the controlling stake in Paramount two months in the past, and the tech titan would wish to put in writing one other enormous test ought to Paramount purchase Warner Bros. Discovery.
So, in Hollywood circles, the query has been: How concerned is the elder Ellison in Paramount’s technique and operations?
Paramount Chief Government David Ellison mentioned he speaks along with his father day-after-day, however he drew an necessary distinction:
“Look, I run the corporate day after day. Make no mistake about that,” David Ellison mentioned Thursday at Bloomberg’s Screentime media convention in Hollywood, including that his father had been a “phenomenal” mentor and “we couldn’t have a greater relationship.”
“He’s the most important shareholder within the enterprise,” Ellison mentioned. “What’s necessary for everyone to know is the best way he approaches that is: How can we maximize worth for our shareholders? … I feel he’s greatest on the planet for doing that.”
For the reason that Ellison household and RedBird Capital Companions acquired Paramount in August, its inventory is up greater than 50%. A lot of the run-up got here final month after information leaked that Paramount was serious about buying Warner Bros. Discovery, which owns CNN, TBS, Meals Community and considered one of Hollywood’s most prolific movie and tv studios.
Ellison refused to touch upon Paramount’s pursuit of Warner Bros. Discovery or whether or not his group had already made a bid.
However he did make clear the enterprise technique behind any pursuit, whereas making an attempt to tamp down fears that one other large merger would end in extra cost-cutting, extra job losses and a discount in content material spending.
“The way in which we method the whole lot is, in the beginning: What’s good for the expertise group, what’s good for our shareholders and worth creation, and what’s good for mainly storytelling at massive?” Ellison mentioned. “We’re taking a look at truly producing extra films [and] extra tv sequence … since you want that content material.”
Paramount staffers are bracing for a large workforce discount subsequent month, a part of the corporate’s aim of discovering greater than $2 billion in spending cuts.
However, for the reason that takeover, Paramount’s Ellison has made a precedence of beefing up relationships with expertise by a sequence of massive bets, together with agreeing to pay $7.7 billion for media rights to UFC’s blended martial arts occasions within the U.S. in a seven-year take care of TKO Group Holdings.
The corporate additionally invested within the development of a Texas-based manufacturing hub for prolific “Yellowstone” creator Taylor Sheridan and agreed to pay $1.5 billion over 5 years for streaming rights for “South Park,” the Comedy Central cartoon. And Paramount lured Matt and Ross Duffer, who created “Stranger Issues,” away from Netflix with an unique four-year tv, streaming and movie deal.
Earlier this week, Paramount spent $150 million to amass Bari Weiss’ the Free Press information web site, whereas additionally naming Weiss editor in chief of CBS Information.
Warner Bros. Discovery, led by Chief Government David Zaslav, additionally has declined to debate Paramount’s curiosity, though folks near the corporate have recommended Zaslav wish to see bidding battle.
No different studios have publicly expressed curiosity and, on Wednesday, Netflix Co-Chief Government Greg Peters downplayed such hypothesis.
“We come from a deep heritage of being builders moderately than consumers,” Peters mentioned throughout a separate look on the Screentime convention, including the monitor document for giant mergers was not nice.
However Wall Avenue extensively expects extra consolidation amongst leisure companies.
“Mockingly, it was David Zaslav final yr who mentioned that consolidation within the media enterprise is necessary,” Ellison mentioned, including “there are quite a lot of choices on the market.” However he declined to elaborate.
Analysts have speculated that, past Paramount, few different media firms have monetary firepower to tug off a bid. And Paramount has an “in” that a number of different media firms, together with Brian Roberts’ Comcast, lack: a great relationship with President Trump and his administration.
Trump has referred to as Larry Ellison a great pal. After David Ellison spoke with Trump at a June UFC combat, the earlier managers of Paramount bought traction of their efforts to settle Trump’s lawsuit over a “60 Minutes” interview final fall with Kamala Harris. Paramount paid $16 million in July to settle the swimsuit and weeks later the Federal Communications Fee authorised the Ellison takeover of Paramount.
“We’ve a great relationship with the administration,” David Ellison mentioned.
