Elon Musk has reportedly invested approximately $1bn in Skydance, the new media empire led by David Ellison. The investment comes alongside fresh equity infusions from existing investors, including board member Laurene Powell Jobs, the widow of Steve Jobs. Semafor first reported the news.
Investment follows major merger
The move follows Paramount's recent $111bn merger with Warner Bros Discovery, a major acquisition that brought the media companies together under the Skydance name. David Ellison, the son of Oracle co-founder Larry Ellison, now heads the new media empire. The Guardian has contacted Musk and Skydance for comment.
The cash infusion strengthens ties between two of Donald Trump's richest financial backers. In September, Semafor reported that Paramount executives had considered Musk as an equity investor, citing his close relationship with Larry Ellison, who invested $1bn in Musk's acquisition of X in 2022 and $45m in support of Trump's 2024 re-election bid. Musk spent more than $290m on Trump's re-election campaign and has spent over $350m backing Republicans in the current US midterm elections.
Leadership and cost-saving targets
After the merger, Skydance co-CEOs David Ellison and Ynon Kreiz, who previously led Mattel, informed employees that the integration would involve layoffs. They stated: “Integrating two companies will bring change, including difficult decisions that affect our workforce.”
The company's leadership, which now oversees Paramount and Warner Bros's movie studios, HBO Max, CBS News and CNN, has set a target of more than $6bn in cost savings over the next three years. Los Angeles county officials estimate this could lead to the loss of 4,500 film and television jobs in Los Angeles alone.
Legal and regulatory context
Prior to the merger, a coalition of 12 states, including California and New York, sued Paramount, arguing that the deal would “extinguish” competition and result in “higher prices, lower quality and less content for film and television”.
In September, a settlement agreement required Skydance to release at least 30 films and more than 180 television shows annually, while ensuring that CBS and CNN maintain editorial independence.
