Paramount executives are reportedly considering seeking an equity investment from billionaire Elon Musk as part of the $81 billion takeover of Warner Bros. Discovery. The potential involvement of Musk, a close friend of Larry Ellison (father of Paramount boss David Ellison), is fueling concerns among CNN staffers about the future of the network.
David Ellison is reportedly looking to strengthen Paramount's financial standing ahead of the mega-merger and has been evaluating potential wealthy backers for the deal. The specific amount of investment being sought from Musk has not been disclosed. Larry Ellison, the founder of Oracle and an ally of former President Donald Trump, is reportedly committed to providing over $40 billion in equity financing for the acquisition. A contribution from Musk could help alleviate this financial burden.
The prospect of Musk's involvement has reportedly caused significant unease at CNN, where employees are already anticipating potential layoffs and uncertain about future leadership under the new ownership. One CNN source described the news as "really scary given what he did at X and DOGE," referencing Musk's acquisition and subsequent changes at X (formerly Twitter) and his involvement with Dogecoin.
Paramount has not commented on the report. The company recently reached a settlement with California Attorney General Rob Bonta, resolving an antitrust lawsuit that had challenged the merger. As part of this settlement, Paramount has committed to investing an additional $1.5 billion in domestic production over the next five years and ensuring a minimum number of theatrical releases annually, including blockbusters and independent films. Failure to meet these release thresholds could result in the forced sale of Miramax Studios.
David Ellison is poised to become a major figure in the entertainment landscape, potentially overseeing assets including HBO Max, Paramount+, HBO, CBS, CNN, and a vast library of film titles. The settlement also includes provisions for independent editorial boards at CBS News and CNN, though details regarding their powers remain unclear. Employees at both networks are reportedly bracing for significant workforce reductions in the coming months. Larry Ellison has a history of supporting Musk's ventures, having invested $1 billion in Musk's acquisition of X and previously serving on Tesla's board.