The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Corrects company market value in the last paragraph to $15 billion from $9 billion.

By Jennifer Saba

NEW YORK, Sept 3 (Reuters Breakingviews) - David Ellison is walking the red carpet after most of the stars have taken their seats. The founder of film and TV producer Skydance Media now runs entertainment conglomerate Paramount after a brutal and bizarre takeover battle. His challenge from here will be to take on Netflix by splicing old takes into a modern blockbuster.

The 42-year-old CEO has ambitious plans to rejuvenate Paramount, which he absorbed last month in an $8 billion deal. Ellison, the son of billionaire Oracle ORCL.N founder Larry Ellison, wants to bridge Hollywood and Silicon Valley, grow the lagging streaming service, invest in fresh programming, improve the technology, and double down on sports. 「This is what I’m doing for the next 20 years of my life,」 he said at an event to mark the start of the newly enlarged company.

It may very well take that long. His nearest models for domination include 94-year-old Rupert Murdoch, 84-year-old John Malone, and 71-year-old Shari Redstone, the fellow corporate scion from whom Ellison acquired control of Paramount. They are all, to varying degrees, shrinking their realms as the industry radically reshapes itself. The traditional broadcast and cable television businesses the dynastic trio helped build are dwindling fast while theaters struggle to lure moviegoers. It’s a little late, and much harder, to be a media mogul.

Ellison nevertheless wasted no time putting his money – and that of his shareholders – where his mouth is. Days after wrapping up the Paramount transaction, he struck a $7.7 billion agreement to broadcast and stream Ultimate Fighting Championship events for seven years. Paramount Skydance paid nearly twice as much as the mixed martial arts league secured in its last deal, MoffettNathanson analysts estimate.

It's a bold, but unproven, effort to muscle further into the ultra-competitive world of live sports, where licensing costs keep soaring. Walt Disney’s DIS.N ESPN+ streaming service has only about 6 million standalone subscribers, reckons MoffettNathanson, and UFC is its main unique attraction. Disney’s streaming suite, by comparison, tallies more than 150 million customers worldwide. By dropping the pay-per-view model, MMA may yet attract more Paramount+ watchers.

It can use the help after the paralysis suffered during Redstone’s tortuous sale process. With 77 million subscribers, Paramount+ has about 40% fewer than Warner Bros Discovery’s WBD.O third-place HBO Max. Paramount’s revenue also slipped 1.4% in 2024 from the previous year even as NBC Universal notched a 4% gain over the same span. Moreover, Paramount’s profitability is the lowest among its peers with an 11% EBITDA margin last year.

There’s only so far Ellison will go, however, with better software and investments in intellectual property like 「SpongeBob SquarePants」 and 「Star Trek.」 Like the magnates of yesteryear, acquisitions and creative finance will probably be part of the equation.

Murdoch spent decades assembling movie studios, cable networks and newspapers before splitting his conglomerate and selling a big chunk of it to Walt Disney in 2019. Sumner Redstone used his father’s small theater chain as the foundation for a sprawling Viacom realm that would eventually include the CBS broadcast network and Paramount Pictures. He merged businesses and carved them up, only for Shari to recombine them again. Malone, too, has mastered the financial dark arts, orchestrating an array of spinoffs, tracking stocks and other tax-optimizing deals across his Liberty empire from SiriusXM satellite radio to Formula One racing.

Ellison looks well-positioned for a shopping spree of his own. For one thing, he presumably has access to capital as the son of one of the world’s richest men. Safra Catz, the CEO of software developer Oracle, and Paul Marinelli, the president of Larry’s Ellison investment firm, both sit on Paramount’s board.

Equally as important, Ellison probably has more political capital than his fellow captains of media. In contrast to President Donald Trump’s contentious pre-merger relationship with Paramount, he considers backer Larry Ellison a 「friend」 and a 「great guy」 and has described David as a 「fantastic young man.」

The relationship could come in handy as media kingdoms splinter. Warner Bros Discovery, for one, plans to separate HBO Max and its movie studios from a cable bundle that includes CNN and the Food Network, making it easier to buy either. Although tech goliaths have the money to double down on streaming and production, Apple AAPL.O and Netflix NFLX.O are averse to big acquisitions and Amazon AMZN.O is trying to keep up in artificial intelligence while figuring out how to capitalize on the MGM studio it already owns. None is in significant need of more subscribers.

Comcast CMCSA.O also may be tempted, but CEO Brian Roberts, who controls 33% of the cable operator’s voting power, would have to woo the Trump administration. The president has called him a 「lowlife」 and a 「disgrace」 after criticism from the company’s MSNBC network, among other perceived slights. Disney, meanwhile, is busy integrating Fox entertainment assets, sorting out plans for its shrinking traditional TV business, and preparing the pivotal rollout of its sports streaming service.

Other possible targets abound, too. Ellison held talks to buy online news publisher The Free Press, according to the New York Times. He said he had 「50 meetings」 during Allen & Co’s July gathering in Sun Valley, Idaho, renowned for inspiring deals. Paramount also is courting the Duffer Brothers, creators of the hit Netflix series 「Stranger Things,」 trade publication Variety reported.

As a relative outsider, Ellison may bring fresh eyes to a struggling industry. At the same time, he has surrounded himself with veterans, such as Gerry Cardinale from co-investor RedBird Capital and Goldman Sachs alumnus Andy Gordon. The presence of both in his orbit further signals the likelihood that a new empire is under construction.

The standard-bearer now, however, is not Murdoch or Malone, but Reed Hastings at Netflix. He successfully married content and technology, overcoming the burden of an antiquated DVD-by-mail business model while bypassing the high cost and risk of buying other businesses to build one from scratch instead. Its $500 billion market value is now worth more than Disney, Comcast, WBD and Paramount combined.

Netflix puts Ellison in a tough spot. Since he unveiled the Paramount deal in July 2024, the stock has gained about 30%, making its equity worth some $15 billion. Team Ellison, however, promised $2 billion in cost savings, which would be worth $16 billion today after taxing and capitalizing them, according to Breakingviews calculations. The discrepancy casts early doubt on the business model and his chances of being the next conquering media tycoon.

Follow Jennifer Saba on Bluesky and LinkedIn.

CONTEXT NEWS

Paramount Global and SkyDance Media, which completed their $8 billion merger on August 7, unveiled a $7.7 billion deal on August 11 for broadcast and streaming rights to Ultimate Fighting Championship.

(Editing by Jeffrey Goldfarb; Production by Maya Nandhini and Pranav Kiran)

((For previous columns by the author, Reuters customers can click on SABA/jennifer.saba@thomsonreuters.com))