Ellison’s Media Takeover Could Reshape America
Larry Ellison holds a significant stake in CBS and Paramount. Now HBO, and a significant portion of TikTok are in his crosshairs. If everything unfolds as expected, this tech billionaire, already among the wealthiest individuals globally and a founder of Oracle, is set, at 81, to emerge as one of the most influential media and entertainment moguls in American history. For the rest of us, the impact of Mr. Ellison’s strategy could prove to be just as significant, if not more so, than the events of a generation ago when Rupert Murdoch introduced his distinctive brand of Down Under snark and cynicism, leading to the creation of what is now Fox News and exacerbating our political polarization.
Mr. Ellison’s anticipated foray into Hollywood and Big Media, if successful, could surpass the efforts of other tech moguls such as Jeff Bezos and Marc Benioff, who have made their mark through the acquisitions of The Washington Post and Time magazine, respectively. For those men, the acquisitions resembled costly pastimes. Mr. Ellison is pursuing a distinctly different path, reinventing himself as a media magnate. Together with his son, David, he may soon find himself at the helm of a significant social media platform, a renowned Hollywood film studio, and one of the largest content streaming services, in addition to two of the nation’s largest news organizations. Considering Mr. Ellison’s close relationship with Donald Trump, an increasingly assertive president might be gaining an exceptionally influential media supporter — essentially, the last thing our nation requires at this moment. Mr. Ellison’s journey commences with David’s recent acquisition of what is now referred to as Paramount Skydance, purchased with a fraction of Larry’s substantial fortune exceeding $350 billion. The agreement, which featured an investment from the private equity firm RedBird Capital Partners, merged the former Paramount Global with Skydance Media, the film production and entertainment company established by David in 2010.
Just weeks after the deal closed in August, it became evident that the Ellisons were committed to establishing Paramount Skydance as a significant player in the media landscape. A seven-year, $7.7 billion agreement was reached for CBS and Paramount to broadcast and stream the Ultimate Fighting Championship. The chief executive of the organization, a longtime supporter of Trump, addressed the 2024 Republican National Convention. The Ellisons have openly expressed their intention to shift CBS News towards the right. They are in discussions to acquire The Free Press, a heterodox publication co-founded by Bari Weiss that emphasizes criticism of “woke” culture, and to place Ms. Weiss in a senior role at CBS News. The Ellisons also appointed Kenneth Weinstein, the former chief executive of the conservative Hudson Institute, as the CBS ombudsman. Then, if all proceeds as intended, Mr. Trump may soon transfer an 80 percent stake in TikTok, the influential social media platform, to the current shareholders, including KKR and General Atlantic, along with a new consortium featuring Mr. Ellison’s Oracle and a16z, the Silicon Valley venture capital firm co-founded by Marc Andreessen, who has strong ties to the administration. Additionally, the Ellisons are said to be preparing a bid — potentially around $80 billion, based on various estimates — for Warner Bros. Discovery, the media conglomerate that oversees notable assets including HBO Max, the Warner Bros. movie studio.
If Paramount Skydance proceeds with an all-cash bid for Warner Bros. Discovery, it stands a strong chance of securing the acquisition. Very few companies are interested in acquiring all of Warner Bros. Discovery, and even fewer would have the financial capability to rival the Ellisons’ resources. Regulators from a different presidential administration may have raised concerns about the deal due to the concentration of Hollywood studios and the merger of CBS, yet there is little expectation that the Ellisons will encounter comparable challenges. Ultimately, Warner Bros. Discovery might find themselves with few options other than to accept Larry’s offer and move on. Numerous jobs will be lost due to the “synergies” that the Ellisons will assure investors they will uncover. That will indeed be painful. However, of even greater significance from the amalgamation of these assets under Larry Ellison’s control will be the anticipation — and likely the actuality — that these influential media outlets will, akin to Fox News, progress toward a more Trump-aligned perspective.
It remains unclear why the Ellisons appear to be heading in this direction. Is it beneficial for business? Is it simply more convenient to yield to Mr. Trump? Do they genuinely support the Trump agenda and all his antics? No matter their motives, two independent journalistic voices, could soon be merged into something potentially almost unrecognizable, resembling far too closely what is routinely presented by the Murdochs. And that will create yet another vulnerability in the delicate structure that is America’s democracy.
