Elon Musk invests about $1 billion in Skydance, source says
The investment is part of the newly merged Paramount-Warner Bros. Discovery company's push to raise equity as it targets $6 billion in cost savings.
At a glance
- Elon Musk has invested about $1 billion in Skydance, according to an unnamed person familiar with the matter.
- Semafor first reported the investment, which is part of a wider Skydance effort to raise equity.
- Skydance expects $6 billion in cost savings over three years and faces nearly $80 billion in debt.
Elon Musk has invested roughly $1 billion in Skydance, according to a person familiar with the matter who asked not to be named because they were not authorized to speak publicly.
The financial injection comes as the company looks to cut costs. Semafor, which first reported the news on Thursday, said 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. Shares of Skydance were down about 1% on Thursday.
A merged studio under cost pressure
Paramount closed its acquisition of Warner Bros. Discovery on Oct. 6, naming the combined entity Skydance. Co-CEOs David Ellison and Ynon Kreiz are tasked with merging two major film studios in Paramount and Warner Bros., two popular streaming platforms — Paramount+ and HBO Max — and a host of corporate functions supporting a portfolio of TV networks and two news divisions.
Skydance has said it expects to see $6 billion in cost savings over three years, though it faces a debt burden of nearly $80 billion.
Ellison family ties to Musk
David Ellison's father, Larry Ellison, has a history with Musk. The Oracle co-founder invested $1 billion in Musk's 2022 deal to purchase Twitter, now called X. Larry Ellison also invested in Tesla in 2018 and served on the company's board of directors.
The elder Ellison also personally guaranteed more than $40 billion of equity financing in Paramount's offer to take over Warner Bros. Discovery.
Source: CNBC.
Questions and answers
- How much did Elon Musk invest in Skydance?
- Roughly $1 billion, according to a person familiar with the matter who was not authorized to speak publicly. The investment is part of a wider Skydance effort to raise equity.
- What is Skydance?
- Skydance is the name given to the combined entity after Paramount closed its acquisition of Warner Bros. Discovery on Oct. 6. It is led by co-CEOs David Ellison and Ynon Kreiz.
- What links Larry Ellison to Elon Musk?
- Larry Ellison invested $1 billion in Musk's 2022 purchase of Twitter, now X, and invested in Tesla in 2018, serving on its board. He also guaranteed over $40 billion of equity financing in Paramount's offer for Warner Bros. Discovery.
