THE PRODUCER
Select filmography: Baby Geniuses, Air Force One Down, Baby Geniuses and the Space Baby, Ghost in the Shell
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A veteran film producer, Paul is behind the Baby Geniuses franchise, as well as other films like Ghost Rider and Ghost in the Shell. He is also Jon Voight’s manager.
But Paul also has a co-production deal with Paramount (his company acquired the library of Atlas Comics, cutting a deal with Paramount to develop projects based on its characters) and an office on the Paramount lot in Los Angeles, not to mention a personal relationship with Redstone. The producer sent a letter to NAI saying that he was interested in acquiring a majority stake in that company, a deal that would give him voting control of Paramount.
Among his backers is John Paul DeJoria, co-founder of the Patrón tequila and Paul Mitchell hair care businesses.
Out of the picture…
THE JILTED BUYERS
Another deal? RedBird’s $4.7 billion war chest suggests that Cardinale’s firm is interested in other big deals. Watch out, Warner Bros. Discovery!
Could there be a round 2? Insiders wonder that if Paramount is unable to turn itself, perhaps Skydance and RedBird could return to the mix.
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David Ellison, the CEO of Skydance, and Cardinale, the financier and founder of RedBird Capital, had been in the driver’s seat for months. In fact, Paramount’s board was scheduled to vote on their deal June 11, before Redstone abruptly nixed the talks, ending months of complicated dealmaking that involved multiple parties.
Or, in the words of Ellison, in a note to staff that same day, “that chapter ended.”
While Paramount may now be in the rearview mirror, Ellison told employees that he thinks the company is “stronger because of this process.”
He added, “For starters, we are smarter. We know more about our business, our potential, and the marketplace at large. We are more confident than ever — not just about Skydance but about the future of entertainment and our ability to continue building a next generation content company on our terms, with the greatest capital, creative and technological resources and talent in the industry.”
As for Cardinale, RedBird will be just fine. The firm raised $4.7 billion in May to help it pursue other deals.
THE EX
Estimated severance: $50 million-plus.
He’s still around: The ex-Paramount CEO’s last day at the company will be Oct. 31, according to SEC filings.
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Bakish, Paramount’s former CEO, was ousted in late April after having expressed opposition to the Skydance deal. While he is sticking around as an adviser into the fall, the former CEO and onetime Redstone confidant was one of the casualties of the extended dealmaking process.
While Bakish largely declined to comment on the deal chatter while it was happening, he told analysts on the company’s fourth-quarter earnings call that he was focused on creating value for all shareholders (emphasis his), suggesting some daylight between him and Redstone, who would have received a premium for her shares had the Skydance deal gone through.
THE ORACLE
Net worth: $135 billion
Estimated loss on Paramount stock: $1.5 billion
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The Oracle of Omaha was at this time last year the single largest owner of Paramount’s Class B nonvoting shares, owning more than 10 percent of them. Despite his long legacy of savvy investment decisions, the Paramount call was a major miss.
Buffett told Berkshire Hathaway investors at its annual meeting May 4 that the firm dumped all of its Paramount stock.
“We sold it all, and we lost quite a bit of money,” Buffett told the crowd of Berkshire shareholders at the annual meeting, adding that he was the one who decided to buy into the company in the first place (there had been speculation that one of Buffett’s deputies may have initiated the trade). “I did it all by myself, folks.”
And while Buffett has a few decades on Ellison, the investor added that he, too, learned a lot from the experience. “I think I’m smarter now than I was a couple years ago, but I also think I’m poorer because I acquired the knowledge in the manner I did,” he said.
Maybe still in the mix? ….
THE LONG SHOT
One problem: As a Japanese company, Sony may not be allowed to own a broadcast network or stations, and Apollo has had run-ins with the FCC. Would the DOJ allow a major studio to vanish?
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Sony, led by Vinciquerra, and Apollo, run by Rowan, continue to talk with Paramount, though sources say that their initial all-cash offer for the company has morphed into something smaller, likely a deal for the film studio and perhaps a few other assets.
Is Redstone or the current Paramount leadership willing to pull that trigger? Or is the revised offer simply not what they are looking for?