A new filing with the Federal Communications Commission outlines a plan to “strengthen and revitalize” the CBS broadcast network and its owned-and-operated stations if Oracle founder Larry Ellison is approved to take over control of the broadcast license.
Ellison, father of Skydance founder and CEO David Ellison (who would become Paramount’s future CEO if the merger goes through), will control the new company through several legal entities along with Jerry Cardinale’s RedBird Capital. The Larry Ellison-controlled companies are contributing most of the cash needed to close the deal, giving them the controlling voting power.
But it must first get government approval, including antitrust review by the Federal Trade Commission or Department of Justice, as well as approval of the transfer of CBS’ broadcasting license by the FCC. This requirement led to the preparation of an application outlining the transaction and the parties involved.
Ellison said in the filing that because he does not currently own any businesses with broadcasting licenses, he would not reduce competition in the space.
And they’re touting plans to invest in both CBS and its local stations.
“CBS and O&O local stations, and their powerful distribution networks, are among the Company’s strongest and most stable assets,” the filing states. “An improved balance sheet will enable New Paramount to make strategic investments in the legendary newsgathering and reporting efforts of the national CBS Television Network and its O&O local stations. These investments will ensure that both the national network (reaching every television market) and O&O continue to serve as trusted news sources. Similarly, our investment in the CBS Television Network will benefit CBS affiliates by continuing to broadcast popular live sports and highly-rated entertainment programming to their audiences. As a result, these iconic broadcast assets will serve as pillars of New Paramount’s growth and success more broadly.”
Regarding O&O, the filing outlines plans to “preserve and enhance the tradition and broad reach of the nationwide CBS television network and 28 company-owned and operated local television stations (“O&O”), while building on those historic strengths to successfully meet the challenges presented by today’s dynamic and disruptive media environment.”
This includes investing in the digital infrastructure of CBS stations. “The planned investments in our O&O stations will not only enhance our online presence but also strengthen the sustainability of our ability to continue delivering essential local and national news and other programming on the air,” the filing states.
In a conference call with reporters after the Skydance deal was announced, Jeff Shell, who will be the new company’s president, touted CBS as the company’s “crown jewel.”
“If there’s any change at CBS, I think it’ll be that we’ll be managing our cash flow a little more aggressively, which means we’ll be making tougher decisions about term and so forth going forward, which is inevitable when your business is in decline,” Shell said, “but there’s no change in our overall vision for the asset, other than we believe in the asset and this will be actively incorporated into all our planning going forward.”