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David Ellison to Acquire Paramount in $8 Billion Skydance Merger, Moody's Considers Downgrade

Jul 9, 2024, 07:31 PM

David Ellison, the son of Larry Ellison, is set to take control of Paramount Global through a merger with his company, Skydance Media. The deal, valued at $8 billion, marks the end of the Redstone family's control over the iconic Hollywood studio. Larry Ellison personally invested $6 billion in the merger. David Ellison has promised to increase production and transform Paramount into a more tech-savvy entity. However, the merger has sparked concerns among theater operators and credit rating agencies, with Moody's considering downgrading Paramount's credit rating to junk. Paramount's stock and bonds have sold off following the announcement. Despite these challenges, several Hollywood figures, including Tom Cruise, have expressed support for the merger, viewing it as a positive move for the industry. The deal was significantly influenced by investor Gerry Cardinale, Ellison's partner in the transaction.