The key facts
- Elon Musk invested about $1 billion in Skydance, Semafor reports
- The investment was made shortly after the closing of the $110 billion Paramount and Warner Bros. Discovery deal
- Skydance plans to cut costs by $6 billion over three years
Musk's investment in Skydance
Elon Musk has invested approximately $1 billion in the new media company Skydance, Semafor reports. According to the outlet, the investment was made at roughly the same time when other Skydance investors were making their equity contributions, including board member Laurene Powell Jobs. It is noted that the funds should provide important financial support for the company, which is seeking to cut costs and raise the value of its shares.
Context of the Paramount and Warner Bros. Discovery deal
The news of the investment emerged a few weeks after Paramount completed its $110 billion acquisition of Warner Bros. Discovery. The combined company is led by co-chairs David Ellison and Egon Durban. Their task is to bring two major streaming services, Paramount+ and HBO Max, under one corporate roof, along with a portfolio of TV channels including CBS, CNN, MTV, TBS, Comedy Central and Food Network. Skydance has already promised to cut costs by $6 billion over the next three years.
Musk's ties to the Ellison family
Musk has previously publicly praised the Ellisons and maintains a close relationship with Larry Ellison: in 2018, the Oracle founder was appointed to Tesla's board of directors. Ellison also contributed $1 billion to help Musk buy Twitter in 2022 and invested in Tesla in 2018. Skydance did not promptly respond to TechCrunch's request for comment.
