Larry Ellison's family investing $6 billion into Paramount deal
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Larry Ellison. Photo: Kimberly White/Getty Images
Oracle founder and chairman Larry Ellison and his family will provide the lion's share of financing for his son's takeover of Paramount Global, Axios has learned.
By the numbers: The Ellisons will invest around $6 billion, while private equity firm RedBird Capital Partners will contribute the remaining $2 billion.
Catch up quick: Skydance Media, a studio led by David Ellison, on Sunday agreed to merge with Paramount, via a complex transaction that includes the purchase of Shari Redstone's National Amusements.
Details: The overall deal is valued at $8 billion, although that could change if Paramount sells any major assets before closing next year.
- The Ellisons and RedBird have transactional covenants that require they be consulted on any major business decisions by Paramount in the interim, RedBird's Jeff Shell tells Axios. Shell has been named president of the combined company. CNBC was first to report the Ellison family's $6 billion investment.
- RedBird founder Gerry Cardinale adds that his firm's $2 billion is fully financed, which would make it the firm's largest-ever investment.
- Cardinale also said earlier reporting on participation by fellow private equity giant KKR was incorrect. KKR would, however, have a stake in the combined company via its existing SkyDance investment.
The bottom line: Skydance and RedBird's commitment to keeping the company together is largely why they landed the deal, unlike "your typical private equity play," the executives said.
Editor's note: The headline and story was corrected to reflect that CNBC (not Axios) was first to report the Ellison family's $6 billion investment into the Paramount deal.
Go deeper: Paramount Global agrees to merge with Skydance Media
