Elon Musk has put roughly $1 billion into Skydance, according to a person familiar with the matter who spoke to CNBC on condition of anonymity because they were not authorized to discuss it publicly. Semafor first reported the news on Thursday.
The investment arrives as Skydance works to trim costs after a transformative deal. Paramount closed its acquisition of Warner Bros. Discovery on Oct. 6, and the combined company now operates under the Skydance name. Co-CEOs David Ellison and Ynon Kreiz are responsible for integrating two major film studios, Paramount and Warner Bros., along with two streaming platforms, Paramount+ and HBO Max. They must also merge the corporate functions that support a portfolio of TV networks and two news divisions.
The financial picture is demanding. Skydance has said it expects $6 billion in cost savings over three years. It also faces a debt burden of nearly $80 billion. According to CNBC, Musk’s commitment is part of a wider effort by Skydance to raise equity investments.
Representatives for Musk and Skydance did not immediately respond to CNBC’s requests for comment, so the details of the reported investment, including its structure and terms, remain unconfirmed. Shares of Skydance were down about 1% on Thursday.
The reported deal fits a pattern of financial ties within the Ellison family’s orbit. David Ellison’s father, Oracle co-founder Larry Ellison, has a history with Musk. The elder Ellison invested $1 billion in Musk’s 2022 purchase of Twitter, now called X. He also invested in Tesla in 2018 and served on the electric-vehicle maker’s board of directors.
Larry Ellison has also been central to the financing behind the media combination itself. According to CNBC, he personally guaranteed more than $40 billion of equity financing in Paramount’s offer to take over Warner Bros. Discovery.
For New York’s business community, the stakes are considerable. The city remains a hub for media, advertising and finance, and a company of this scale, with studios, streaming services, networks and news operations, touches all three. How Skydance balances an integration of this size against a heavy debt load will be closely watched by lenders, advertisers and industry rivals alike.
For now, the Musk investment rests on a single anonymous source and one initial report. Until Skydance or Musk’s representatives weigh in, the key questions of how the money will be used and what stake it represents remain open.
Frequently Asked Questions
Did Elon Musk invest $1 billion in Skydance?
Reports say Musk invested roughly $1 billion in Skydance, but the claim rests on an anonymous source and has not been confirmed by Musk or Skydance. Semafor first reported it on Thursday.
When did Paramount close its acquisition of Warner Bros. Discovery?
Paramount closed its acquisition of Warner Bros. Discovery on Oct. 6, after which the combined company began operating under the Skydance name.
Who leads Skydance after the Warner Bros. Discovery merger?
Skydance is co-led by CEOs David Ellison and Ynon Kreiz, who are responsible for integrating the studios, streaming platforms, and corporate functions of the combined company.
How much debt does Skydance have and how much does it plan to save?
Skydance faces a debt burden of nearly $80 billion and expects $6 billion in cost savings over three years.
What is Larry Ellison’s connection to the Paramount and Warner Bros. Discovery deal?
Larry Ellison, David Ellison’s father, personally guaranteed more than $40 billion of equity financing for Paramount’s offer to take over Warner Bros. Discovery. He also previously invested $1 billion in Musk’s 2022 purchase of Twitter, now X.
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