Reports from Semafor and CNBC have confirmed that Elon Musk has committed approximately $1bn to Skydance, the entertainment conglomerate assembled by David Ellison following the merger of Paramount and Warner Bros. Discovery. The investment arrives as Skydance implements substantial cost reduction measures across its operations.
Cable industry veteran John Malone had hinted at the possibility of such a deal during a Tuesday appearance, stating: "I would not doubt for a minute that before very long you're going to see an announcement." Semafor's reporting, which cited unnamed sources with knowledge of the transaction, broke the story two days after Malone's remarks. CNBC subsequently corroborated the figure using its own sources. Neither Musk nor Skydance representatives have publicly confirmed the investment, and TNW has not independently verified the arrangement.
Capital infusion amid restructuring
The Musk investment coincided with additional funding rounds from other backers, including board member Laurene Powell Jobs, according to Semafor's reporting. Skydance is pursuing $6bn in cost reductions over a three-year period following Paramount's completion of its Warner Bros. Discovery acquisition on 6 October. The combined entity carries approximately $80bn in debt, with share prices declining roughly 1% on Thursday.
The Ellison family ties
Musk's relationship with the Ellison family runs deep. Larry Ellison, David's father and Oracle's co-founder, contributed $1bn toward Musk's 2022 acquisition of Twitter, now operating as X. The elder Ellison also made a Tesla investment in 2018 and served on the company's board. In the Warner Bros. transaction, he personally underwrote more than $40bn of equity financing, Semafor reported.
During his Paley Center appearance, Malone highlighted the historical partnership: "Who helped Elon finance Twitter when he bought it? Larry Ellison." Musk's public endorsements of the Ellisons have fueled speculation about potential collaboration between Starlink and Skydance. David Ellison has expressed ambitions to operate Skydance according to technology sector principles, telling CNBC earlier this month: "We are building a true product and tech team."
Documentary complications
Skydance's ownership of HBO brings with it a documentary project that complicates the investment narrative. Director Alex Gibney's film "Musk" premiered in American theaters on 9 October and is scheduled for HBO broadcast in January, according to Gibney's statements. The filmmaker expressed concerns about the project's fate when the Warner Bros. transaction finalized, telling Business Insider on 15 October: "I've been told that they will air it and that even David Ellison very well knows about it and promises he will air it."
HBO and Skydance declined to comment on the matter to Business Insider. Musk has publicly criticized the documentary, and his platform X blocked its advertising in September. On X, Musk wrote about Gibney: "He has ZERO integrity. Horrible human."
Source: The Next Web
