Alex Davis of Omni Law P.C. provides key insights on $8 billion Paramount-Skydance deal structure
We’re proud to share that our founding attorney, Alex Davis, was recently featured in Forbes for his analysis of the landmark $8 billion merger between Paramount and Skydance Media. His commentary provided valuable insights into the complex legal and financial structures that made this transformative entertainment industry deal possible.
Featured Commentary on High-Profile Transaction
The Federal Communications Commission’s approval of the Paramount-Skydance merger marked the end of a 383-day regulatory process that will establish Larry Ellison and his son David Ellison as major players in Hollywood’s entertainment landscape. Alex was called upon to explain the sophisticated voting rights arrangements that evolved throughout the approval process.
“From a voting standpoint, David Ellison will be in control through his entities, but the taxable benefits will flow to Larry,” Alex told Forbes, breaking down the strategic restructuring that occurred in mid-July 2024.
Analysis of Strategic Corporate Restructuring
Alex helped readers understand how the deal’s voting structure underwent significant changes during regulatory review. The arrangement evolved from Larry Ellison initially holding all voting and equity shares through his trust, to a final structure giving David Ellison 50% of voting rights in post-merger Paramount, with Larry controlling 27.5%.
Alex explained to Forbes that this restructuring serves multiple important functions:
- Regulatory Requirements: The changes addressed necessary regulatory considerations and follow established patterns in large-scale transactions
- Tax Efficiency: The structure enables profitable businesses to “benefit from any kind of taxable losses or depreciation with this business”
- Operational Balance: David maintains day-to-day control while ensuring appropriate financial benefits flow to the primary equity holder
Understanding Industry-Shaping Deals
This merger creates an entertainment powerhouse encompassing over 1,200 film titles, major channels including MTV, Nickelodeon, Showtime, and CBS News, plus distribution rights to thousands of additional properties. Alex’s analysis helped illuminate how thoughtful corporate structuring enables such significant industry consolidations while addressing regulatory, tax, and operational requirements.
About Us
Alex Davis founded Omni Law P.C. with extensive experience in mergers and acquisitions, corporate transactions, and entertainment industry matters. His ability to break down complex deal structures has made him a trusted voice for understanding high-profile business transactions.
At Omni Law P.C., we provide sophisticated legal counsel to clients navigating complex business deals, with particular focus on mergers and acquisitions, corporate law, and entertainment industry transactions.
Alex’s analysis was featured in Forbes’ coverage of the Paramount-Skydance merger. For guidance on mergers and acquisitions, corporate restructuring, or entertainment industry transactions, we invite you to call us today at (646) 736-4184 for a consultation or send us an email here.