Musk invests $1bn in Skydance as media giant tackles $80bn debt

Elon Musk has invested about $1 billion in Skydance, the company formed after Paramount completed its acquisition of Warner Bros. Discovery, as the combined entertainment group seeks to cut costs and manage a heavy debt burden, CNBC reported.

The investment is part of a broader effort by Skydance to raise equity financing, according to a person familiar with the matter who spoke on condition of anonymity because they were not authorised to comment publicly.

Paramount completed its acquisition of Warner Bros. Discovery on October 6, naming the combined entity Skydance.

Co-chief executives David Ellison and Ynon Kreiz face the task of integrating Paramount and Warner Bros. studios, streaming platforms Paramount+ and HBO Max, and corporate operations supporting a portfolio of television networks and two news divisions.

Skydance has said it expects to achieve $6 billion in cost savings over three years, but the combined company carries nearly $80 billion in debt.

Representatives for Musk and Skydance did not immediately respond to CNBC’s requests for comment.

Musk has previous financial ties to David Ellison’s father, Oracle co-founder Larry Ellison, who invested $1 billion in Musk’s 2022 acquisition of Twitter, now known as X.

Larry Ellison also invested in Tesla in 2018 and served on its board of directors.

The elder Ellison personally guaranteed more than $40 billion in equity financing for Paramount’s bid to acquire Warner Bros. Discovery.