Move Over, Murdochs: The Ellisons' Rise in US Media
Larry Ellison, the tech billionaire behind Oracle, and his son David Ellison, a Hollywood producer, are rapidly expanding their influence in the media landscape. Their deals involving companies like TikTok and potentially CNN could establish them as a major media dynasty, challenging the dominance of families like the Murdochs.
The Trump Connection
Larry Ellison's relationship with former US President Donald Trump has been instrumental in paving the way for the family's media ambitions. Trump has publicly praised Ellison and his business acumen. Trump's support has also benefited Oracle's involvement with TikTok.
Oracle became involved with TikTok during Trump's presidency, initially hosting the app's US user data. Under a White House-brokered agreement, Oracle is now poised to become a significant investor with an even larger role, including retraining the algorithm.
David Ellison's Media Empire
David Ellison, through his production company Skydance, has built a successful career in Hollywood, producing hit movies like True Grit, Mission Impossible, and World War Z. He also founded his own studio, Skydance, in 2010, which led him to his success.
His acquisition of Paramount, backed by his father, marks a significant leap into mainstream media. This deal gives him control over a vast operation, including CBS, one of America's biggest news outlets. The acquisition required approval from the Federal Communications Commission (FCC).
Potential Expansion and Concerns
The Ellisons are reportedly considering a bid for Warner Brothers Discovery, which includes brands like Looney Tunes, Harry Potter, HBO, and CNN. Such a deal would require government clearance from competition regulators and would create one of the largest media conglomerates in the US.
The Ellisons' growing power and ties to Trump have raised concerns among some, who fear the potential for political influence over news coverage. Critics worry about the concentration of power and the implications for democratic principles.
"The Ellison duo taking over both CBS and CNN, as well as controlling a major social media network like TikTok, would be dangerous for democracy. And given their closeness to the Trump regime, that seems to be the point," the media watch group FAIR warned recently.
Senator Elizabeth Warren has even called for any Paramount-Warner Brothers tie-up to be blocked, describing it as a "dangerous concentration of power".
Reactions and Defenses
David Ellison has attempted to address concerns about political influence, stating his desire to avoid being associated with either the left or the right. He has emphasized that Skydance is an entertainment company first and aims to appeal to a broad audience.
Other executives, like Gerry Cardinale, a partner at Skydance, have also pushed back against the notion of owners influencing news coverage, calling the idea "bad business." They assert that independence and objectivity are crucial to their investment strategy.
