Elon Musk invests about $1 billion in Ellison's Skydance
Elon Musk has invested about $1 billion in Skydance, the merged Paramount and Warner Bros. Discovery company led by David Ellison, Semafor reported Thursday, citing people familiar; CNBC confirmed it with one source. Neither side has commented, and the stake and terms are undisclosed.
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What happened
Musk put roughly $1 billion into Skydance, Semafor reported Thursday, citing people familiar with the matter. Semafor said the investment came around the same time as other equity from investors including Laurene Powell Jobs, and that it had reported in September that the company was weighing such a deal. CNBC confirmed the investment through one person familiar with it.
Why it matters
The deal deepens long-running financial ties between the Ellisons and Musk. Larry Ellison, David's father, put $1 billion into Musk's 2022 Twitter purchase and guaranteed more than $40 billion of equity for the Warner Bros. Discovery bid, CNBC noted.
More context
The company: Paramount closed its acquisition of Warner Bros. Discovery on Oct. 6, and the combined company is named Skydance, with David Ellison and Ynon Kreiz as co-CEOs, CNBC reported. The company has promised $6 billion in savings over three years and carries nearly $80 billion in debt. Its shares fell about 1% Thursday.
What others said: Media investor John Malone said at a Paley Center event, "I think there's a deal coming there," according to Semafor. David Ellison has said, "We are building a true product and tech team," calling artificial intelligence "a tool for artists."
Timeline: September: Semafor reports the company is weighing a Musk investment. Oct. 6: the Warner Bros. Discovery deal closes. Oct. 22: Semafor and CNBC report Musk's roughly $1 billion investment.
What's still unknown: The size of Musk's stake, the terms and whether it carries a board seat or any business tie-up with his companies. Musk and Skydance did not respond to requests for comment from Semafor or CNBC.
2 listed sources
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Sourcing: Semafor first reported the investment; CNBC confirmed it with one person familiar. Musk and Skydance did not respond to either outlet, so the amount is as reported, not confirmed by the companies. Hero photo is a 2014 file image of the Paramount lot.
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