David Ellison Makes Offer for Redstone Family’s Media Empire

(Bloomberg) — David Ellison has made a preliminary offer to buy National Amusements Inc., the holding company of the Redstone family, as a way to take control of Paramount Global, the media giant that owns MTV and Nickelodeon, according to people familiar with the matter.

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Ellison has also had discussions with Paramount about merging his film and TV studio, Skydance Media, into the larger media company, after he takes control. Both sides have hired advisers and are exchanging financial information, said the people, who asked to not be identified discussing private conversations.

National Amusements owns movie theaters and controls 77% of Paramount’s voting stock. Paramount Chair Shari Redstone and her advisers have discussed terms of a National Amusements acquisition with Ellison. He plans to finance a deal with help from Skydance’s investors, namely his father, Larry, the co-founder of software giant Oracle Corp. and one of the world’s richest men, as well as the private equity firms RedBird Capital Partners and KKR & Co.

Another option being considered is that Ellison, with his partners, takes all of Paramount Global private, CNBC reported on Wednesday. That would significantly increase the cost of the deal, since Paramount already has about $15 billion in net debt. A spokesperson for Ellison declined to comment.

The 41-year-old media mogul is trying to seize on a rare opportunity to buy one of Hollywood’s great studios. He has met with Redstone and tried to convince her that he will be a guardian of the company’s many assets, in particular its namesake studio, a 110-year-old business that produced The Godfather among other classic films. Ellison has worked with Paramount Pictures for years as a financier and producer of projects including the Star Trek film series, the Mission: Impossible movie franchise and the blockbuster Top Gun: Maverick.

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It’s no sure thing that a deal will happen. Ellison and his advisers may…