Jeff and Jeff, or Jeff Shell and Jeff Zucker, may be returning to network TV sometime soon.
Both men, who were forced out of their jobs at NBCUniversal and CNN over sex scandals, are now at private equity firm Redbird Capital, which is run by Shari Redstone’s management. Skydance Media’s ongoing plot to take over the ailing Paramount Entertainment empire.
If the deal goes in favor of Skydance, which we’ve heard has been the main bidder for Paramount for several weeks, Shell and Zucker will once again be in charge of running key media assets from Paramount’s studios to CBS. It could play a big role. , one of the world’s leading news organizations, albeit in a weakened state.
“If this happens, there will obviously be a role for Shell,” one trade source said last week. Zucker is also said to be a candidate.
Mr. Zucker and Mr. Schell have several things in common, and it goes beyond just being at the same company. As some of you may recall, Schell was ousted as NBCU’s CEO last year after parent company Comcast accused him of “inappropriate conduct” toward NBCU’s female reporters. Since early this year, he has quietly hung up his hat as head of Redbird’s sports and media group.
Mr. Zucker joined Redbird after being ousted from CNN for failing to disclose a consensual relationship with his communications director. Although he is a solid partner, we hear that he spends most of his time on his side business, currently in charge of a joint venture with Redbird known as Redbird IMI. His potential involvement with Paramount becomes a bit complicated as he is considering buying a British newspaper.
At the center of all this is the struggling Paramount Corporation. The company’s controlling shareholder, Shari Redstone, is making a buyout herself after seeing her family’s fortune eroded by the ongoing turmoil in linear television.
lonely survivor
As most members of the media know, the sale negotiations have been going on for months, with various media outlets keeping an eye on Paramount’s internal affairs and mostly passing by. Another potential bidder, media entrepreneur Byron Allen, has said he has the funds to make a deal, but people close to the negotiations are skeptical.
So Skydance and Redbird may be the only survivors of what was once described as a bidding war.
Background and contract status of the duo: Skydance is a production company owned by David Ellison, son of Larry Ellison of Oracle fame. This old man has a net worth of around $140 billion and is said to be a benefactor.
So is Redbird, the media-focused private equity shop run by Jerry Cardinale. The former Goldman banker brought his own fame. He is considered one of the top investors in this field.
My sources say David Ellison has a strong interest in Paramount Studios for obvious reasons. He’s a film producer (his credits include “Top Gun: Maverick” and “Mission: Impossible”). Redbird is eyeing strong involvement in media properties like CBS, which is the headquarters of both Shell and Zucker.
In search of “4 billion dollars”
One problem is that Shari Redstone wants a lot of money. At least her $4 billion figure, which I keep hearing, is losing value by the day.
Also, Paramount’s ownership structure is not traditional, so this is not a traditional acquisition. Shari, the daughter of late media mogul Sumner Redstone, controls Paramount through ownership of a holding company founded by Pops, known as National Amusements.
Skydance/Redbird will buy a stake in National Amusements and “return ownership” of Paramount’s assets, a person close to the deal told me. Public shareholders may not benefit directly from acquisitions, and they are some of the most astute investors, like Mario Gabelli and Warren Buffett. If this happened, they would want their meat or they would sue, people close to the deal say.
Skydance clearly has the dough, and bankers are of course good at buying and selling things. If Skydance and Redbird complete the deal, Cardinale will likely unload some of Paramount’s “Melting Ice Cube” assets. These include MTV and Comedy Central, whose audience share is being eroded by cord-cutting.
However, running a media company requires more than just capital or rainy day funds. Operation type is required. That’s why people in the media industry keep talking about Jeff and his role.
