A private equity firm just put $4 billion behind the biggest movie-merger in Hollywood history, and the whole thing reads like a power play straight out of the summer blockbuster season.
RedBird Capital Partners, led by Gerry Cardinale, invested $4 billion into Paramount’s deal to merge with Warner Bros. Discovery, making it the biggest M&A deal ever done in Hollywood. The move comes on top of a $2 billion investment RedBird already made in David Ellison’s Skydance Media when it took over Paramount Global, a deal that closed in August 2025. Together, those investments bring RedBird’s total stake in the Ellisons’ media holdings to $6 billion.
Who Holds What Stake
The Ellison family, through Larry Ellison’s equity investment, holds the largest stake in Skydance. Larry Ellison is David’s billionaire father. The Ellisons and RedBird together own the sole Paramount Class A common stock, which gives them full control of the combined company’s voting shares. Cardinale, founder and managing partner of RedBird, sits on Skydance’s board.
Cardinale spoke about the deal at the merger closing on Tuesday. He said the combination was a turning point for the business, and he pointed to the company’s position in the industry.
“This is a defining moment for the industry,” Cardinale said. “By applying our owner-operator model to Paramount and WBD’s unmatched portfolio of iconic franchises, premium original programming, and live sports rights, we can protect that legacy while building for a media landscape that’s undergoing transformational change.”
He also praised the team behind Skydance. “David Ellison, Skydance co-CEO Ynon Kreiz and the rest of our world-class Skydance team have the vision and track record to lead through this change. We’re proud to back them as we build a stronger Hollywood, expand opportunities for talent and create long-term value for our shareholders.”
The Portfolio Behind the Money
Skydance says its library is the most varied collection of any studio, with the largest theatrical output in the business. It promises to put out at least 30 films in theaters each year. The studio’s entertainment lineup includes Top Gun, Harry Potter, White Lotus, SpongeBob SquarePants and more.
RedBird itself has a wide reach beyond Hollywood. The New York-based firm says it holds investments in more than 50 companies, representing over $82 billion in enterprise value. Its portfolio runs from movies to sports to a media startup.
In addition to its stake in Paramount Skydance, RedBird has invested in:
- Ben Affleck and Matt Damon’s Artists Equity
- Ari Emanuel’s Mari global events and experiences company
- The Fenway Sports Group, which owns the Boston Red Sox and other sports teams and businesses
- A recent deal acquiring control of Puck, valued at $250 million
The Deal’s Timeline
| Date | Event |
|---|---|
| August 2025 | Skydance closes takeover of Paramount Global |
| Tuesday | Paramount-WBD merger closes |
The timeline shows the key dates in the deal. Skydance took over Paramount Global in August 2025, and now the combined Paramount-Warner Bros. Discovery company is officially formed.
Why This Matters
This is not a small bet. $4 billion is a huge commitment for a private equity firm, and it signals that RedBird sees the combined company as a long-term play rather than a quick flip. The Ellisons hold the controlling stake, and Cardinale’s seat on the board means RedBird has a direct hand in how the company is run.
The merger brings together two major studios with deep libraries and live sports rights. Cardinale framed the investment as protecting a legacy while building for the future.
“We can protect that legacy while building for a media landscape that’s undergoing transformational change.”
That is a careful reading of where the business is headed. The combination of Paramount and Warner Bros. Discovery creates a company with a vast library of content, including Top Gun, Harry Potter, White Lotus, SpongeBob SquarePants and more.
What Comes Next
The merger has closed. The Ellisons and RedBird together hold 100% control of the combined company’s voting shares. Cardinale’s statement points to the next phase: protecting the existing portfolio while building for a changing media landscape.
The deal also puts RedBird in a rare position. It is not just an investor — it is a director on the board and a partner in the controlling stake. That gives the firm significant influence over how the combined company operates.
For Hollywood, the deal represents a new shape of ownership. Private equity firms have become a force in the business, and this merger shows how far that influence has grown. A $4 billion investment is a statement of confidence in the combined company’s ability to navigate the transformational changes Cardinale described.
The deal is done. The question is whether the investment delivers the returns RedBird expects.
The deal is done. The question is whether the investment delivers the returns RedBird expects.
Source material: “RedBird Ponied Up $4 Billion to Fund Paramount’s Warner Bros. Discovery Takeover,” Variety.
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