Media mogul John Malone predicted Wednesday that Elon Musk’s SpaceX could strike a multibillion-dollar investment and distribution deal with Skydance, just two weeks after the company completed its $81 billion acquisition of Warner Bros. Discovery.
Speaking with Liberty Global CEO Mike Fries at the Paley International Council Summit in New York, Malone suggested the companies could reach a global content distribution agreement involving as much as $8 billion to $10 billion in cross-investment.
The potential partnership could give SpaceX’s Starlink satellite internet service a foothold in Hollywood content distribution while providing financial backing to Skydance, which is navigating a substantial debt load and the integration of two major media companies. Malone did not indicate that negotiations were underway.
“I think there’s a deal coming there,” Malone said, pointing to the financial ties between Musk and Oracle founder Larry Ellison, David Ellison’s father and a major backer of Skydance.
Malone noted that Larry Ellison helped finance Musk’s acquisition of Twitter, now X, and pointed to Ellison’s use of Tesla stock to help finance his son’s Hollywood ambitions.
“I would not doubt for a minute that before very long, you’re gonna see an announcement,” Malone said.
Skydance completed its acquisition of Warner Bros. Discovery on Oct. 6, bringing Warner Bros., HBO and CNN under the same corporate umbrella as Paramount and CBS. The combined company is targeting at least $6 billion in annualized synergies within three years.
Representatives for Skydance and SpaceX did not immediately respond to requests for comment.
Malone, the former chair emeritus of Warner Bros. Discovery, also urged David Ellison to retain the creative talent behind HBO and Warner Bros. while finding ways to transition the company’s declining linear television business toward streaming.
He warned that YouTube is “running away with the gold ring when it comes to media,” arguing that the Ellisons will need to combine social media, premium entertainment and streaming to compete with Google’s video platform.
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