Meet The Other Billionaire Behind Skydance’s Paramount Deal

Key Concepts

• Sky Dance Media's Paramount takeover
• Redbird Capital Partners' role in the deal
• Jerry Cardonal's influence and investment strategy
• Paramount's challenges and opportunities under new ownership
• Monetizing intellectual property (IP)

Sky Dance's Paramount Takeover: A Complex Deal

The proposed $8 billion takeover of Paramount by Sky Dance Media has been a year-long saga marked by political and familial complexities. The deal has faced criticism related to perceived political influence, specifically regarding Sheri Redstone's alleged capitulation to Donald Trump. This includes Paramount's agreement to pay $16 million to Trump's future presidential library to resolve a lawsuit over a 60-minute segment on Kamala Harris, and CBS News's decision to cancel Stephen Colbert's late-night show in 2026.

The deal also involves a complex family dynamic. David Ellison, founder of Sky Dance, is partnering with his father, Larry Ellison (founder of Oracle and the second richest person in the world), who is a major investor in Sky Dance.

Redbird Capital's Pivotal Role and Jerry Cardonal

Amidst the high-profile figures, Jerry Cardonal, founder of Redbird Capital Partners, is poised to be an influential figure in the new Paramount. Redbird, a Sky Dance shareholder since 2020, is contributing $1.8 billion to the $8 billion purchase.

• Leadership Roles: Cardonal will join Paramount as a director and appoint a second director. Jeff Shell, former CEO of NBC Universal and chair of Redbird's sports and media business, will become Paramount's president. Andy Gordon, head of Redbird's West Coast office, will become Paramount's chief operating officer and chief strategic officer.
• Ownership Structure: Redbird will hold 22.5% of Paramount's voting rights, David Ellison will hold 50%, and Larry Ellison will hold 27.5%. This structure positions Cardonal as a key voice in potential disagreements between the Ellisons.

Jerry Cardonal: The Shadow Entrepreneur

Cardonal, a private equity investor with over 25 years of experience, founded Redbird in 2014. He has a track record of high-stakes deals in sports, entertainment, and media.

• Notable Investments: Redbird acquired AC Milan for $1.2 billion in 2022 and agreed to purchase The Telegraph for approximately $660 million. The firm has also backed ventures involving LeBron James, Dwayne "The Rock" Johnson, Ben Affleck, and Matt Damon.
• Investment Philosophy: Cardonal describes himself as a "shadow entrepreneur," focusing on solving problems with capital.
• Financial Performance: Redbird has $12 billion in assets under management, with 100 investment professionals across six global offices. The firm has delivered a 2.5x gross multiple of capital and a 33% internal rate of return.
• Net Worth: Forbes estimates Cardonal's net worth at $1.8 billion.

Paramount's Challenges and Opportunities

Paramount faces significant challenges, including the decline of linear television, competition in the streaming market, and a $14.2 billion long-term debt load. Potential viewer backlash related to perceived political influence is also a concern.

However, Cardonal sees Paramount as a prime candidate for the "Redbird treatment," given its extensive library of over 12,200 film titles, distribution rights to 2,400 films, and established television networks.

Monetizing Intellectual Property: Redbird's Strategy

Cardonal's strategy for Paramount revolves around monetizing its "world-class IP." He emphasized that Redbird is not just focused on deal-making but on leveraging the company's intellectual property assets.

• Quote: "What we do at Redbird is we look for ways of monetizing worldclass IP. This is an over 100-year-old business with really highquality intellectual property. We're not just deal guys looking to do a deal. We're not just private equity guys looking to go buy something." - Jerry Cardonal

Conclusion

The Sky Dance Paramount deal is a complex transaction with political, familial, and financial dimensions. Jerry Cardonal and Redbird Capital Partners are poised to play a significant role in shaping Paramount's future. While Paramount faces considerable challenges, Redbird's strategy of monetizing intellectual property offers a potential path to success. The deal represents a high-stakes bet for all involved, with the potential for significant rewards and risks.