Larry Ellison Plans to ‘Revitalize’ CBS If FCC Approves Skydance Deal

A new document filed 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 were allowed to take control of the broadcast licenses.

Ellison, the father of Skydance founder and CEO David Ellison (who would be the future CEO of Paramount if the merger were to go through), would control the new company through a handful of corporate entities, alongside Gerry Cardinale’s RedBird Capital. The companies controlled by Larry Ellison are putting up most of the cash required to complete the deal, hence the voting control.

But first it must get government approval, and in addition to antitrust scrutiny from the Federal Trade Commission or Justice Department, that means the FCC agreeing to transfer CBS’s broadcast licenses. That requirement led to the filing of a filing that describes the deal and the players involved.

In its filing, Ellison notes that it does not currently own any business with a broadcasting license and therefore does not intend to restrict competition in the industry.

They boast of plans to invest in both CBS and local stations.

“CBS and its local O&O stations and their robust distribution networks are among the Company’s strongest and most stable assets,” the document reads. “With an enhanced balance sheet, New Paramount will be able to make strategic investments in the legendary newsgathering and reporting operations of the CBS national television network and the Company’s local O&O stations. These investments will ensure that both the national network (which reaches all television markets) and the O&O stations continue to serve as trusted sources of news. The investment in the CBS television network will similarly help ensure that popular live sports and highly rated entertainment programming remain available to viewers over the air and benefit CBS’s affiliates. In turn, these iconic broadcast assets will serve as pillars of New Paramount’s broader growth and success.”

With respect to O&O, the filing outlines an overall plan to “preserve and enhance the legacy and broad reach of CBS’s national television network and 28 local television stations owned and operated by the company (“O&O”), while leveraging their historic strengths to effectively meet the challenges of today’s dynamic and disruptive media landscape.”

That includes an investment in CBS’ digital footprint. “The investments planned for the O&Os strengthen not only their online presence, but also their stability to continue to deliver important local and national news and other programming on air,” the document says.

In a conference call with reporters after the Skydance deal was announced, Jeff Shell, who was set to become CEO of the new company, touted CBS as its “crown jewel” — an asset to the company.

“I think if CBS is going to change, we’re probably going to manage it a little bit more aggressively from a cash flow perspective, which means making tougher decisions about periods and things like that going forward, which is necessary when you have a declining business,” Shell says. “But there’s really no change in the overall vision for the asset, other than we believe in it, that it’s going to be an active part of all our plans going forward.”