Paramount's $110 billion purchase of Warner Bros. Discovery closed Tuesday, ranking among the biggest media tie-ups on record. The buyer is Paramount Skydance Corp., and the new company will be called Skydance. Chief Executive Officer David Ellison got the deal across the line after what was described as a bruising fight for control with Netflix Inc., while also fending off antitrust lawsuits.
A person familiar with the investment said RedBird Capital Partners supplied $4 billion in new equity to fund the transaction, asking not to be identified because the financing has not yet been made public. With this latest commitment, Gerry Cardinale's firm has invested $6 billion in total in the entity to be known as Skydance. "This is a defining moment for the industry," Cardinale declared in a statement that announced the merger's closing.
Who funds a mega-merger ends up shaping what the combined company does. Market Briefs covers media deals free every morning.
Last year, RedBird backed a combination between Skydance Media and Paramount, featuring a joint commitment with the Ellison family totaling more than $8 billion, a step that set the stage for Tuesday's result. Cardinale established the firm; earlier in his career he worked in investment banking at Goldman Sachs Group Inc., and he has been an adviser and dealmaker to Ellison in Ellison's takeover of Paramount and Warner Bros.
A $110 billion price tag and $6 billion from RedBird underscore the scale of this merged media heavyweight. If you care where the power to finance big-budget content and sports rights is clustering, this deal is a marker for how much capital is consolidating behind a single banner that, according to the companies, will be called Skydance.
Four billion dollars buys real influence over strategy. Get the free Market Briefs daily newsletter and follow the money.
