RedBird ups Skydance commitment to $6 billion

RedBird Capital Partners is adding another $4 billion to its investment in David Ellison's Skydance, TheWrap reports. The firm's total commitment in the newly combined Paramount-Warner Bros. Discovery now stands at $6 billion, according to a person familiar with the matter.

The extra money comes after the $110 billion merger officially closed on Tuesday.

RedBird founder Gerry Cardinale, who also serves as a Skydance board director, called the moment "a defining moment for the industry." In a statement, he said RedBird wants to protect the legacy of the combined company's franchises while building for a media landscape that is going through transformational change.

RedBird first invested $275 million in Skydance in 2019. It later expanded its commitment to $2 billion to support the purchase of Shari Redstone's National Amusements and the pairing of Skydance with Paramount, TheWrap reports.

The merger is funded by $47 billion in equity investment, led by the Ellison family and RedBird, who control all voting shares and all governance rights. Other contributors include Saudi Arabia's Public Investment Fund, the Qatar Investment Authority, Abu Dhabi's L'imad Holding Company, and LionTree, TheWrap reports. The equity financing is backstopped by the Ellison family and RedBird, with Larry Ellison previously giving an "irrevocable personal guarantee."

RedBird's other media and sports holdings include Artists Equity, Banijay Entertainment, Front Office Sports, Puck, and the United Football League.