Elon Musk Reportedly Invests $1B in Skydance Four Years After Larry Ellison Backed His Twitter Takeover

Elon Musk has reportedly invested about $1 billion (£750 million) in Skydance, the media company formed when Paramount Skydance completed its $110 billion (£82.5 billion) acquisition of Warner Bros. Discovery on 6 October.

The investment, first reported by Semafor and separately reported by CNBC, comes as the combined business seeks cost savings following the takeover. Its portfolio includes CBS, CNN, HBO, Warner Bros. and Paramount+.

The reported sum matches the $1 billion commitment Larry Ellison made towards Musk's Twitter takeover in 2022. Ellison's son, David, now leads Skydance as chairman and chief executive, alongside co-CEO Ynon Kreiz.

Larry Ellison Backed Musk's Twitter Takeover

Musk disclosed the earlier financing in a Schedule 13D amendment filed with the US Securities and Exchange Commission on 5 May 2022. It listed the Lawrence J. Ellison Revocable Trust as committing $1 billion in equity towards the proposed Twitter acquisition.

Ellison's ties to Musk also extend to Tesla. He invested in the electric vehicle manufacturer in 2018 and subsequently served on its board.

The matching sums provide a link between the transactions, although there is no confirmation that Musk's reported Skydance investment was intended to reciprocate Ellison's support.

Skydance declined to comment on the investment report. A representative for Musk did not respond to Bloomberg's request for comment.

Investment Follows Earlier Funding Discussions

In September, Semafor reported that Paramount executives had discussed approaching Musk about joining an equity syndicate. The size of any potential investment was not established at the time.

The latest reporting describes an investment of about $1 billion, but its detailed terms have not been disclosed. It is also unclear whether Musk invested personally or through SpaceX.

The distinction matters for the company's ownership structure, but neither Skydance nor Musk has publicly explained how the reported investment was arranged.

Malone Predicted a Larger SpaceX Deal

The report emerged a day after billionaire cable executive John Malone predicted a broader agreement involving SpaceX and Skydance at a Paley Center summit.

'I think there's a deal coming there,' Malone said. Referring to the earlier Twitter financing, he asked: 'Who helped Elon finance Twitter when he bought it? Larry Ellison?'

Malone envisaged a deal worth $8 billion (£6 billion) to $10 billion (£7.5 billion), including a global output arrangement. His comments concerned a much larger potential transaction than the reported $1 billion investment.

He also discussed Starlink, SpaceX's satellite network, as a potential distribution partner. No such partnership has been announced.

Malone argued that traditional television channels needed to adapt their distribution, saying companies must 're-engineer all of those channels, and figure out how they morph into streams themselves'.

Skydance Targets Savings After Warner Takeover

The Warner Bros. Discovery acquisition brought together a substantial collection of film studios, television networks and streaming services. Alongside CBS and CNN, the combined portfolio includes HBO Max, Nickelodeon and TNT Sports.

The takeover included $47 billion (£35.25 billion) in new equity investment, priced at $12 (£9) per share. Skydance has said it is targeting at least $6 billion (£4.5 billion) in annual run-rate synergies over three years—a measure of the recurring savings and other benefits management expects from combining the businesses, rather than savings already achieved.

That integration provides the financial backdrop to Musk's reported investment. It remains separate from Malone's prediction of a larger SpaceX agreement: the investment has been reported by multiple outlets, while a Starlink distribution partnership has not been confirmed.