Is a New Family Dynasty Set to Disrupt US Media?

This article explores the burgeoning influence of tech billionaire Larry Ellison and his son, Hollywood producer David Ellison, as they pursue significant media acquisitions that could reshape the landscape of global media. With ties to political figures and a growing portfolio that includes major names like TikTok and CBS, their ascent raises critical questions about media ownership and its implications for democracy.

Last updated: 05 October 2023 (BST)

Key Takeaways

• Larry Ellison, co-founder of Oracle, is expanding his influence in media through significant acquisitions.
• David Ellison, a Hollywood producer, is stepping into major media roles, including overseeing Paramount.
• The Ellisons' ties to former President Trump have raised concerns about potential media bias and influence.
• Critics warn that their control over major media outlets could threaten democratic processes.
• Investors are optimistic about the Ellisons' potential tie-up with Warner Brothers Discovery, viewing it as a strategic move against competitors like Disney and Netflix.

The Rise of the Ellison Family in Media

With a towering figure like Larry Ellison at the helm, the Ellison family has made significant strides into the media sector. Historically known for his technological prowess, Ellison's recent ventures indicate a shift towards media ownership, which could rival the likes of the Murdoch dynasty.

Larry Ellison: From Tech Mogul to Media Power Player

Born on 17 August 1944, Larry Ellison co-founded Oracle in 1977, a company that has become synonymous with database technology and cloud computing. Over the years, his wealth has skyrocketed, recently reaching approximately £370 billion, largely due to Oracle's pivotal role in artificial intelligence infrastructure. As of October 2023, he briefly held the title of the world's richest person, surpassing even Elon Musk.

Ellison's interests have traditionally leaned towards luxury pursuits like yachting and tennis, but his strategic alliances, particularly with political figures, have thrust him into the media spotlight. His relationship with Donald Trump, characterised by mutual admiration, has opened doors to media acquisitions that would have been unimaginable a decade ago.

David Ellison: Carving His Own Path in Hollywood

David Ellison, born on 15 January 1982, has worked to establish his own identity in the film industry, separate from his father's considerable wealth. After a rocky start with a poorly received film in 2006, he founded Skydance Media in 2010, which has since produced several successful films such as True Grit and Mission Impossible. His sister, Megan Ellison, also founded Annapurna Pictures, further cementing the family's presence in Hollywood.

In September 2023, David took a significant step by acquiring Paramount, a move supported by his father. This acquisition has positioned him in charge of a complex organisation that not only produces films but also operates CBS, one of America's largest news outlets.

The Implications of Their Media Ventures

The Ellisons' ambitions don’t stop with Paramount. Reports suggest they are preparing to bid for Warner Brothers Discovery, a conglomerate that includes beloved franchises and major networks like CNN and HBO. If successful, this would create one of the largest media entities in the United States, raising concerns about concentration of media power.

Political Connections and Their Impact

Larry Ellison's political donations and connections have not gone unnoticed. He has been labelled a Republican megadonor and hosted fundraising events for Trump. His relationship with the former president has reportedly influenced Oracle's dealings with TikTok, where the company acts as a host for user data, a role that has expanded under the Trump administration.

Critics argue that the Ellisons' media empire, with its ties to Trump, poses a danger to democratic ideals. Concerns have been raised about the potential influence over news coverage, especially with David Ellison's recent changes at CBS that align with political expectations from the White House.

Concerns Over Media Bias

Criticism from various quarters, including media watchdog groups, highlights fears that the Ellisons could steer news narratives in favour of their political affiliations. Senator Elizabeth Warren has called for regulatory scrutiny over the potential merger between Paramount and Warner Brothers Discovery, characterising it as a "dangerous concentration of power." Furthermore, House Democrats have initiated investigations into whether the Ellisons made commitments to Trump during the acquisition process, which could violate anti-bribery laws.

Market Reactions and Future Prospects

On Wall Street, there is cautious optimism regarding the potential merger between Paramount and Warner Brothers Discovery. Analysts see an opportunity for the Ellisons to create a formidable media giant that can compete with industry leaders like Disney and Netflix. David Ellison's background as a filmmaker and his leadership at Skydance distinguish him from other tech billionaires who have entered the media space.

However, analysts caution that while the Ellisons may have ambitions in the media sector, news operations may not be a primary focus due to their comparatively lower financial returns. David Ellison has expressed intentions to make substantial cuts at Paramount, which may further divert attention from news coverage.

Seizing the Moment

The Ellisons' current trajectory appears to be a strategic move to capitalise on their political connections and the changing media landscape. As noted by industry experts, the window for leveraging these relationships may be limited, and the Ellisons seem keen to make the most of it before political tides shift.

Conclusion: The Future of Media Ownership

As the Ellison family continues to expand their influence in the media sector, the implications for journalistic integrity and democratic processes have never been more pertinent. Their growing power, coupled with political ties, raises significant questions about the future of media ownership and its impact on news coverage. In an era where information is power, the Ellisons' ambitions may shape not only entertainment but also the very narrative of public discourse.

As we watch this evolving situation, one must ponder: how will the dynamics of media ownership affect the landscape of democratic engagement in the years to come? #MediaOwnership #EllisonFamily #MediaInfluence

FAQs

What companies are the Ellisons looking to acquire?

The Ellisons are reportedly pursuing acquisitions of Paramount and Warner Brothers Discovery, which would significantly enhance their control over major media properties.

What are the concerns regarding the Ellisons' media acquisitions?

Critics worry that the Ellisons' close ties to political figures, particularly Donald Trump, could lead to biased news coverage and a concentration of media power.

How has Larry Ellison's wealth changed over time?

Larry Ellison's wealth has notably increased, reaching approximately £370 billion in 2023, largely due to Oracle's success in the technology sector.

What is Skydance Media?

Skydance Media is a film and television production company founded by David Ellison in 2010, known for producing successful films and expanding into television and gaming.

What changes has David Ellison made at CBS?

David Ellison has implemented changes at CBS, including appointing a conservative watchdog to review bias complaints and altering the format of its political show, 'Face the Nation'.