New boss of Paramount grilled about rumored Trump deal

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David Ellison successfully secured his award on Thursday, marking the completion of Skydance Media’s $8-billion acquisition of the storied Paramount.

However, the tech mogul promptly encountered queries regarding Donald Trump’s statement claiming a $20 million worth of free advertising and programming as part of a settlement to resolve his lawsuit about the edits made by “60 Minutes” on CBS. This settlement paved the path for Skydance’s acquisition of the company, which encompasses not just CBS, but also MTV, Comedy Central, and the legendary Paramount Pictures.

Previously, Paramount settled a lawsuit for sixteen million dollars, legal experts in the First Amendment deeming it baseless. Approximately three weeks after that, the Federal regulators authorized John Ellison’s acquisition of Paramount.

In simpler terms, if Skydance Media agreed to provide pro bono public service messages for Donald Trump as part of settling the “60 Minutes” lawsuit, viewers would need to tune into CBS to learn more about this arrangement.

During a press conference on Thursday, as the new chairman and CEO of Paramount, Ellison was asked by the media about the alleged Public Service Announcements (PSAs). However, instead of providing a direct response, he chose not to address the question explicitly.

As a movie enthusiast, I’d like to share that during the gathering hosted at Paramount’s Times Square headquarters in New York City, I made it clear we wouldn’t delve into politics – today at least.

Paramount Global managed the settlement, and Skydance had no involvement whatsoever, according to Ellison. However, Trump, who enjoys a cordial relationship with Larry Ellison’s father, has repeatedly claimed that he was promised $20 million in free airtime for public service announcements supporting White House-favored causes. Trump’s previous representative, Ari Emanuel, also played a part in advocating for this deal to be approved by the president on behalf of Ellison.

At the press conference, Ellison, along with other high-ranking officials, expressed their backing for the news division. Following the completion of the deal, Ellison noted that CBS News and “60 Minutes” were some of the initial destinations on his tour of the company’s offices.

Regarding the news ombudsman that Skydance consented to under the agreement’s terms, Paramount’s latest president, Jeff Shell, stated clearly that this role should not be perceived as one of censorship.

Shell stated that the role of an ombudsman is primarily about promoting transparency, rather than monitoring or overseeing activities. And indeed, they advocate strongly for transparency.

Inquired about Skydance’s response to persistent criticisms against mainstream media originating from the White House, Ellison stated that the company will firmly maintain its position.

“We’re obviously going to be fierce defenders of our talent,” Ellison said. “We always have been.”

Prior to the press conference, Ellison released a mission statement for the newly merged company, emphasizing the integration of their renowned film and television assets with advanced technology. Notably, Paramount houses several timeless yet mature cable brands such as MTV, Nickelodeon, and Comedy Central.

In the future, we’ll approach our tasks with determination and positivity, aiming to evolve Paramount into a forward-thinking tech-focused enterprise that seamlessly merges the artistic essence of Hollywood with the pioneering mindset of Silicon Valley,” (Ellison) wrote.

Hollywood Inc.

Once the deal wraps up on August 7th, both Wall Street and the media sector will keep a close eye on these key aspects.

One potential rephrased version could be: For Skydance, the pressing task ahead is to expand the reach of Paramount+, a platform that while boasting several hit shows, has struggled to keep up with the dominance of streaming giants like Netflix and Amazon Prime.

Ellison promised the direct-to-consumer offering can be “a leading global streaming service.”

The magnate is assuming control over the popular TV network once known as CBS, yet, much like other traditional media giants, it’s grappling with the shift of audiences towards streaming platforms.

In simpler terms, Ellison’s remark emphasized his appreciation for “60 Minutes,” noting its history of significant journalism guided by experienced reporters dedicated to truthfulness, honesty, and the confidence of the public. He also thanked the news team for persevering amidst the controversy.

In simpler terms, Ellison expressed that they deeply cherish the influential journalistic history of CBS News and eagerly anticipate nurturing a newsroom environment where journalists feel empowered, trusted, and fully prepared to excel in their roles.

The newly renamed firm has adopted the name Paramount, which is part of Skydance Corporation. Its shares are transacted using the symbol PSKY on stock exchanges. During the midday trade, these shares were observed dipping approximately 3%, to a price of $11.25.

Based on information from Ellison and his investors at Paramount (RedBird Capital Partners), it’s expected that the company will soon be poised for significant growth or expansion.

Ellison’s studio project started approximately two years back amidst the turmoil in Hollywood’s summer labor sector. At that time, the family business of Shari Redstone, National Amusements, encountered financial difficulties when Paramount ceased paying dividends to its shareholders.

In December 2023, Redstone requested approval from Paramount’s board for the Skydance transaction. This led to another challenging period as board members deliberated on shaping a deal that would benefit all common shareholders, not just the Redstones.

On July 7, 2024, the deal was officially sealed as part of Skydance’s acquisition. Redstones National Amusements Inc. received a total of $2.4 billion in this buyout. Once their substantial debts are settled, the family is expected to receive approximately $1.75 billion.

In simpler terms, the shareholders of Paramount are set to receive a total of 4.5 billion dollars. Additionally, Skydance and RedBird Capital Partners have agreed to invest an extra 1.5 billion dollars into Paramount’s finances to help reduce their existing debts.

RedBird’s investment in Paramount and long-term alliance with the Ellison family signifies our strong belief in the worth of top-tier intellectual property and the opportunity for significant expansion,” stated Gerry Cardinale, RedBird founder.

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2025-08-07 22:31