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Two of Hollywood’s biggest names have backed Skydance’s takeover bid for Paramount to fend off competition from Sony and Apollo.
James Cameron, his film Titanic is the biggest success in Paramount’s history, and Endeavor CEO Ari Emanuel told the Financial Times that they believe Skydance founder David Ellison can revitalize the struggling company.
“I love the Ellison idea,” Cameron said in an interview. “If he gets…. . . Leading Paramount creatively could be a huge boon for this company during these difficult times. David has proven himself.”
Emanuel, a Hollywood “superagent” and chief executive of the company that owns the WME talent agency and controls TKO Group, said Ellison was “a natural buyer” of the company.
“David has a real film business [with] big franchises,” he said. “Everyone does business with him – Amazon, Netflix, Apple, Paramount and Disney all have a good relationship with David.”
Ellison, son of Oracle founder Larry Ellison, founded Skydance in 2010 and has produced a number of blockbusters including Top Gun: Maverick, which Paramount released.
With backing from private equity groups RedBird and KKR, Ellison is seeking a two-stage deal. First, he would pay $2 billion for National Amusements, which houses the majority of voting shares controlled by Shari Redstone. Paramount would then acquire Skydance for $5 billion in an all-stock deal.
Paramount is one of Hollywood’s most storied companies but has struggled to survive in a brutal streaming battle that has upended the entertainment industry.
Paramount is controlled by Redstone’s National Amusements, a family-owned company that began as a chain of movie theaters in New England in the 1930s. NAI controls nearly 80 percent of Paramount’s voting shares but holds only about 10 percent of its equity.
Cameron and Emanuel’s approval comes at a precarious time for Ellison’s offer.
Skydance had been in exclusive negotiations with Paramount, but that time slot expired on Friday without an agreement. However, a special committee appointed by the Paramount board and tasked with evaluating the group’s options can still weigh the offer. Sources close to the bid told the FT that Ellison was prepared to withdraw, although there were no immediate signs he was preparing to do so.
The end of the exclusive window came just a day after Sony and private equity group Apollo made a $26 billion offer for Paramount.
There are fears in Hollywood that an Apollo-Sony takeover of Paramount would reduce the number of major studios, leading to job cuts and potentially calling into question the future of the storied Paramount property on Melrose Avenue.
However, some Paramount investors have told the FT they prefer Apollo’s approach, saying it would offer a better premium to common shareholders.
Over the weekend, Warren Buffett announced that he had sold his entire stake in Paramount at a loss. Buffett’s $2.6 billion investment in 2022 was seen as a positive sign for Paramount, but since Berkshire first announced its investment, shares have plunged more than 60 percent.
“I think I’m smarter now than I was a year or two ago, but I also think I’m poorer for acquiring the knowledge the way I did,” Buffett said, referring to on his understanding of the entertainment business. “We lost money at Paramount and I did it all by myself, guys.”
Emanuel said Ellison, 41, has “a fire in his belly” that could help get the company back on track.
“I don’t want to denigrate anyone, but I think [Paramount] needs a little new energy. I think he will deliver,” he said. “I think he will be an incredible additional partner for Shari in this situation.”
Cameron said he worked as a behind-the-scenes consultant for Ellison during Skydance’s production of Terminator Genisysa sequel to his 1984 classic Terminator. “I was skeptical about the trust fund, baby, you know, daddy’s money,” he said. “Yes, he had the resources, but he was also the right man to have those resources.”
He added: “I wouldn’t hesitate to work on a project with him.” . and we have a few things to cook.”