Elon Musk Invests $1 Billion in Skydance Media
The investment deepens Musk's financial ties to the Ellison family, who previously backed his Twitter acquisition.
Elon Musk has invested approximately $1 billion in David Ellison’s Skydance media company, according to a Semafor report. This investment occurs four years after David Ellison's father, Larry Ellison, provided financial backing for Musk's acquisition of the social media platform then known as Twitter.
The deal was finalized shortly after Skydance completed its takeover of Warner Bros. Discovery. This consolidation has reportedly left the combined media entity with a significant debt burden of approximately $82.5 billion. Skydance is aiming to achieve at least $6 billion in annualized cost savings within three years following the Warner Bros. Discovery acquisition.
The investment from Musk, the specific details of his ownership stake, and whether he received a board seat or governance rights were not specified in the report. This move further solidifies Musk's business relationships with the Ellison family, with Larry Ellison having publicly characterized the Tesla CEO as a close friend.
Larry Ellison's trust contributed $1 billion to Musk's 2022 acquisition of Twitter. Additionally, Ellison, an Oracle co-founder, made a substantial investment in Tesla in 2018 and served on its board until 2022. Filings indicate that Larry Ellison and a related trust guaranteed $45.72 billion in financial obligations tied to his son's recent takeover of Warner Bros. Discovery.
To finance the Warner Bros. Discovery acquisition, Ellison also pledged collateral, including shares in Oracle, Tesla, and SpaceX, to secure bank loans. Skydance’s expanded portfolio now includes CBS, CNN, HBO, Paramount+, and Warner Bros.
As of June 30, the combined company had approximately $82.5 billion in debt against $7.9 billion in cash, according to financial statements filed with the Securities and Exchange Commission. Ellison has indicated plans to leverage artificial intelligence to enhance production efficiency, even as the company commits to releasing at least 30 theatrical films and over 180 television shows annually. He stated in a recent CNBC interview that AI is viewed as a tool for artists.
While no formal agreement has been announced, billionaire cable magnate John Malone suggested the possibility of a future distribution deal between Skydance and Musk's Starlink satellite network. Neither Musk nor Paramount immediately responded to requests for comment on the report.