We present the following Month-End #RandomThoughts courtesy of the Information on the SkyDance/Paramount merger and a vision of the future courtesy the National of the UAE:
The Briefing
By Martin Peers
Greetings!
Oracle chair Larry Ellison's power in American business is about to expand. The Federal Communications Commission’s approval on Thursday of Ellison-backed Skydance’s takeover of film and TV icon Paramount Global cleared the last major hurdle standing in the way of the $8 billion deal. It’s expected to close on Aug. 7, when Larry Ellison’s son David will become CEO of a newly enlarged Paramount, owning CBS, Paramount studios, a bunch of TV channels, the Paramount+ streaming service and Skydance’s film and TV production business. The company will remain publicly traded. Hopefully Oracle and Paramount will coordinate their quarterly earnings calls so we don’t have to choose between the two Ellisons!
In the annals of inherited wealth, it’s hard to think of another example of a rich public-company founder financing his son in the takeover of another public company: Typically moguls focus on ensuring that their children succeed them at their own business. Larry Ellison’s willingness to back David’s adventures at Paramount is in that sense commendable—he’s helping his son make his own way. But it does set the stage for what’s sure to be a fascinating drama. The acquisition is, after all, something of a risky bet, given that Paramount isn‘t exactly the shiniest of the Hollywood jewels, what with its heavy exposure to slowly declining cable channels. What will happen between father and son if it all goes wrong?
Sure, Larry Ellison can easily afford to write off the money he’s putting into the deal. He’s just one of the people financing it, so he may only be putting in a couple of billion dollars. His stake in Oracle, by contrast, is worth $282 billion. Still, billionaires don’t throw money away happily. And there are signs the two took some time figuring out which of them would be in charge of the new company. Skydance’s initial filings with the FCC showed that the elder Ellison would control Paramount after the deal, but a few weeks later, the corporate structure changed, putting David in charge as the one holding all of the Ellison family’s votes in Paramount. Then 10 days ago, it changed again to show that Larry Ellison would have about 35.5% of the family’s votes, FCC filings show. The filing specified he wouldn’t have any “veto rights, or any special or outsized voting rights” as a result.
Of course, this isn’t Ellison’s first rodeo in Hollywood. His daughter, Megan, is also a Hollywood player, with her Annapurna Pictures entertainment company. A few years ago, the elder Ellison had to step in to overhaul the money-losing business, according to Variety. It’s possible that Larry Ellison is an indulgent dad who won’t mind if the Paramount takeover goes south. Whatever happens, though, this is one drama worth tuning in for
Iced out
The ICEBlock app makes it possible to alert others about where ICE agents have been spotted
In brief | We have an update to a story we briefly touched on in Future Beat last week. The wife of a software developer who created a controversial app called ICEBlock, which makes it possible to report sightings of Immigration and Customs Enforcement (ICE) officials, has been fired from her job as a forensic auditor with the US government.
But Ms Feinstein told The National that she had nothing to do with the creation of the app, which was developed by her husband, Joshua Aaron.
She added that she is listed as a stakeholder in the app company so she could wind down the company in the event that something were to happen to her husband.
Why it matters | Masked ICE agents have swept up thousands of migrants in a nationwide dragnet that has sometimes snared US citizens and green card holders.
Current and former detainees have said they were kept in dismal conditions in ICE custody, charges the agency denies.
The firing of Ms Feinstein, who had no part in developing the app, shows that the US government, rightly or wrongly, has deemed that technology is crossing a legal and constitutional line, and it's willing to go into battle to discourage others from doing the same.
However her husband, who actually created ICEBlock, isn't backing down.
Quoted | "They can continue to demonise me and the app all they want, but nothing about the app is illegal"
– Joshua Aaron, app developer
Future in focus
US-based Colossal Biosciences claims to have 'de-extincted' dire wolves using genetic engineering. Photo: Colossal
An artist's impression of a planned, small modular nuclear reactor spearheaded by Rolls-Royce
The artificial intelligence boom was the primary driver of a recently signed nuclear energy agreement between Bahrain and the US, according to Middle East technology expert Mohammed Soliman. “This deal positions Bahrain to become an emerging AI power, leveraging small modular nuclear reactor (SMR) inroads and its legacy as one of the Gulf’s earliest technology pioneers,” he explained.
This is a signal: For the last decade, momentum for SMRs has slowly but surely accelerated. And now the technology that makes them possible is on the brink of coming to fruition, potentially enabling them to scale up and be a real solution to climate woes. With a forthcoming energy crunch caused by AI, SMR developments are happening at the right time and place.
In case you missed it
UN Secretary General Antonio Guterres says now is a moment of opportunity to supercharge the global shift. AP
