Elon Musk has reportedly invested $1 billion in Skydance, the entertainment company controlled by David Ellison, giving the billionaire a financial stake in a media empire that includes CNN, CBS, HBO and Paramount.
The investment, reported by Semafor on October 22, could strengthen ties between Musk and the Ellison family, whose media holdings have expanded significantly.
It also comes amid Musk’s long-running public criticism of CNN and his disputes with several prominent media personalities.
Musk Takes Stake in Company Behind Major Media Brands
Musk, the world’s richest man, is among the investors backing Skydance as the company works to strengthen its finances following an ambitious expansion.
The investment reportedly coincided with contributions from other backers, including billionaire philanthropist and Skydance board member Laurene Powell Jobs.
Skydance is led by David Ellison, son of Oracle co-founder Larry Ellison. Its expanding portfolio encompasses television networks, film studios and streaming services, including Paramount and its associated entertainment properties.
The company’s assets include franchises such as Game of Thrones, The Last of Us, Yellowstone and NCIS, alongside major sports broadcasting rights and news operations.
CNN Critic Musk Becomes an Investor in Its Parent Company
The investment marks a new development in Musk’s contentious relationship with CNN, which he has repeatedly criticised publicly.
In 2020, Musk questioned the network’s continued existence, saying, “What I find most surprising is that CNN still exists.”
Four years later, he declared that “CNN is dying” following a dispute with former CNN anchor Don Lemon.
Musk also abandoned a multimillion-dollar deal with Lemon in March 2024. The proposed arrangement had involved the former anchor producing content for Musk’s social media platform, X.
Musk’s latest investment places him financially within the corporate structure overseeing CNN, although there is no evidence that he intends to intervene in the network’s editorial or programming decisions.
CNN anchor Jake Tapper and HBO comedian John Oliver are among the prominent media figures who have publicly criticised Musk.
Larger Investment and Starlink Partnership Speculated
The $1 billion investment has prompted speculation that Musk could eventually commit substantially more money to Skydance.
Veteran cable television executive John Malone suggested that a broader agreement involving Musk and the Ellison family could be forthcoming.
Speaking at the Paley Center, Malone said he believed a deal was approaching and anticipated that an announcement could come before long.
According to The Hollywood Reporter, Malone raised the possibility of an investment worth between $8 billion and $10 billion.
An investment of that size could give Musk a substantial minority stake in the entertainment conglomerate, depending on the company’s valuation and the terms of any transaction.
Malone also suggested that a potential partnership could involve Starlink, Musk’s satellite internet business. No such agreement has been officially announced.
Larry Ellison’s Longstanding Financial Ties to Musk
Musk’s relationship with the Ellison family predates the Skydance investment.
Larry Ellison contributed approximately $1 billion towards Musk’s $44 billion acquisition of Twitter in 2022.
He had also invested in Tesla in 2018 and served on the electric vehicle manufacturer’s board.
Larry Ellison has separately guaranteed more than $40 billion in equity financing for Paramount’s acquisition of Warner Bros., a transaction that expanded the family’s entertainment holdings.
Malone highlighted these financial connections when discussing the possibility of further cooperation between the two families.
“Who helped Elon finance Twitter when he bought it? Larry Ellison?” Malone said.
He also referred to the role of Tesla stock in providing Ellison with funds connected to the development of Skydance.
X and Hollywood Could Find Opportunities in a Partnership
Musk’s ownership of X has already established him as a major figure in digital media, and a closer relationship with Skydance could create opportunities to expand the platform’s entertainment offerings.
One possible arrangement could involve distributing films, television programmes or sporting events through X, potentially broadening its services beyond social media.
However, there is currently no confirmed agreement to make Skydance’s programming available on the platform.
Musk has previously explored original video content through proposed programmes involving former CNN anchor Don Lemon and sports broadcaster Jim Rome.
Starlink could also feature in a future partnership.
The satellite internet company has been expanding its communications infrastructure and acquiring wireless spectrum as it seeks to compete more directly with established telecommunications providers.
A collaboration could theoretically combine Skydance’s entertainment catalogue with Musk’s distribution networks, although the details of any such arrangement remain uncertain.
David Ellison Pursues Cost Cuts and AI Development
Musk’s investment comes as David Ellison works to restructure and strengthen the media business through cost reductions and technological development, including a greater focus on artificial intelligence.
Speaking to CNBC earlier in October, Ellison described plans to expand the company’s product and technology capabilities.
“We are building a true product and tech team,” he said.
“We are a big believer that artificial intelligence is a tool for artists, not the other way around.”
The company has been pursuing changes as it seeks to improve its financial position following its expansion.
Investment Raises Questions About Political and Editorial Influence
Musk has become one of the Republican Party’s most prominent financial supporters, committing substantial sums to support President Donald Trump and conservative political candidates.
His reported investment in the company controlling CNN, CBS, HBO and Paramount has raised questions about whether his growing involvement in media could eventually affect editorial or programming decisions.
No evidence has emerged that Musk intends to influence the coverage or content of the company’s outlets.
The reported $1 billion investment nevertheless gives him a financial foothold in an entertainment business whose television networks, studios and streaming services reach audiences across the United States and internationally.
