After departing from CNN more than a year ago, Jeff Zucker, the network’s former president, has embarked on a quest for business opportunities with the support of $1 billion in funding from prominent investors in the media and finance sectors.
RedBird Capital Partners, a private-equity firm, and International Media Investments, backed by the United Arab Emirates government, have placed their bets on Zucker’s track record in the media industry. They believe his expertise will enable him to identify promising investments in digital media, sports, entertainment, and news.
According to The New York Times, RedBird IMI, the newly formed venture, involves key players such as Gerry Cardinale, the CEO and founder of RedBird, and Sultan Ahmed Al Jaber, an Emirati government minister who has been instrumental in IMI’s investment discussions in the United States. Mr. Cardinale serves as the chief investment officer of RedBird IMI, while Mr. Al Jaber holds the position of chairman.
The venture will receive a commitment of $250 million from RedBird, with IMI contributing the remaining $750 million. Since launching his venture, Zucker has attracted numerous suitors, including former CNN employees, agents, and corporate development executives, who have visited his offices on Madison Avenue near Central Park in Manhattan. In these meetings, he has reportedly shared his insights on the future of entertainment, sports, and news, while evaluating various investment prospects.
Describing RedBird IMI as “Candle Media but half the price,” in reference to a company led by former Disney executives Kevin Mayer and Tom Staggs, Zucker has conveyed his vision for the venture. Candle Media has made substantial cash and stock acquisitions, including Moonbug Entertainment, the creator of the popular animated show “CoComelon,” and Hello Sunshine, Reese Witherspoon’s production company.
The success of Zucker’s transition from a TV producer and corporate operator to a private equity investor remains to be seen. Private equity ventures rely on identifying valuable assets and astute deal-making for profitability. However, Zucker benefits from the expertise of Mr. Cardinale, a seasoned Goldman Sachs veteran with extensive investment experience.
Zucker has already begun exploring potential deals. RedBird IMI has engaged in discussions regarding investments in digital media start-ups like Puck and Semafor. They have also met with the founders of Punchbowl News, a media start-up focused on Capitol Hill affairs, launched in 2021. Zucker has expressed his interest in building a company, similar to Condé Nast, that owns digital publications catering to specific audiences.
Since the inception of RedBird IMI, Zucker has been actively expanding his team. Rani Raad, the former president of CNN Commercial Worldwide, who previously worked alongside Zucker at CNN, has joined the venture.