RedBird Capital Partners has invested another $4 billion in David Ellison’s Skydance, bringing its total commitment in the combined Paramount-Warner Bros. Discovery to $6 billion, an individual familiar with the matter told TheWrap.
The increased investment comes on the heels of the official closing of the $110 billion merger on Tuesday.
“This is a defining moment for the industry. By applying our owner-operator model to Paramount and WBD’s unmatched portfolio of iconic franchises, premium original programming, and live sports rights, we can protect that legacy while building for a media landscape that’s undergoing transformational change,” RedBird founder and managing partner and Skydance board director Gerry Cardinale said in a statement on Tuesday. “David, our Co-CEO Ynon Kreiz, and the rest of our world-class Skydance team have the vision and track record to lead through this change. We’re proud to back them as we build a stronger Hollywood , expand opportunities for talent, and create long-term value for our shareholders.”
RedBird first invested $275 million in Skydance in 2019. It subsequently upped its total commitment to $2 billion to help acquire Shari Redstone’s National Amusements and combine Skydance with Paramount.
The Paramount-WBD merger is funded by a total equity investment of $47 billion, which is led by the Ellison family and RedBird, who control 100% of the company’s voting shares. No other equity participant will have any governance rights.
Other contributions in the equity investment include three Middle Eastern sovereign wealth funds — Saudia Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Company — and LionTree. The equity financing is backstopped by the Ellison family and RedBird, with Larry Ellison previously making an “irrevocable personal guarantee.”
In addition to Skydance, RedBird’s investment portfolio in the media, entertainment and sports space includes Ben Affleck and Matt Damon’s Artists Equity, Affleck’s InterPositive, Banijay Entertainment, Ari Emanuel and Mark Shapiro’s Mari, EverPass Media, Front Office Sports, Puck, the United Football League, Everpass Media and more.
