Elon Musk has invested about $1 billion in Skydance Corp., Semafor reported, providing a much-needed financial injection for the newly formed media and entertainment company headed by David Ellison.
The deal came together around the same time as equity investments from Skydance’s other investors, including board member Laurene Powell Jobs, Semafor reported, citing unidentified people familiar with the matter.
Skydance declined to comment. A representative for Musk didn’t respond to a request for comment. Shares initially spiked higher on the news before reversing course. They were down 1.7% at 12:46 p.m. in New York.
Billionaire media mogul John Malone predicted the move earlier this week, speaking at a conference in New York. Malone pointed to close ties between Ellison’s father, Oracle Corp. co-founder Larry Ellison, and Musk.
“Who helped Elon finance Twitter when he bought it? Larry Ellison,” Malone said at the Paley International Council Summit on Wednesday. “How did Larry Ellison come up with some of the money to put into the creation of Skydance? Tesla stock. And I would not doubt for a minute that before very long you’re gonna see an announcement.”
Malone suggested Musk’s potential investment would be about $8 billion to $10 billion.
Skydance acquired Warner Bros. Discovery Inc., the parent of CNN, HBO and other media businesses, in a $110-billion deal that was completed earlier this month. Since the transaction closed, Skydance shares have tumbled over concerns about the new company’s nearly $87 billion in total debt. Skydance has pledged to cut $6 billion of costs over the next three years.
Musk’s entry into Skydance is likely to make waves for reasons other than just financial. The world’s wealthiest person is a polarizing figure with strong ties to President Trump and vocal opinions on how he perceives free speech and the role of the media. Skydance now controls two major news platforms in CNN and CBS, which have been the subject of concerns about political influence, though David Ellison has said the organizations will remain editorially independent. The move also ties Musk, who controls one of the dominant social media platforms, X, to Larry Ellison’s Oracle, which has an ownership stake in TikTok’s US operations. Buying into Skydance also gives Musk a foothold in Hollywood through Skydance’s content pipeline of films, TV series, live sports and more.
Miller writes for Bloomberg.
The post Elon Musk invests $1 billion in Skydance, report says appeared first on Los Angeles Times.
