David Ellison, co-chief executive officer of Skydance Corp. and Elon Musk, CEO of SpaceX.
Michael Nagle | Bloomberg | Kent Nishimura | AFP | Getty Images
Elon Musk invested in Sky Dance of around $1 billion, according to a report from Semafor on Thursday.
The financial injection comes as the company seeks to reduce costs. Paramount has completed its acquisition of Warner Bros. Discovery on October 6, naming the combined entity Skydance. Co-CEOs David Ellison and Ynon Kreiz are charged with merging two major movie studios Paramount and Warner Bros., two popular streaming platforms – Paramount+ and HBO Max – and a host of corporate functions to support a portfolio of television networks and two news divisions.
Skydance said it expects to achieve $6 billion in savings over three years, even though it faces a debt burden of nearly $80 billion.
Musk’s commitment is part of a broader effort by Skydance to raise equity investments, Semafor reported. Representatives for Musk and Skydance did not immediately respond to CNBC’s requests for comment.
Skydance shares fell about 1% after the report was released.
Ellison’s father, Larry Ellison, has a history with Musk. Oracle co-founder invested $1 billion in Musk’s 2022 deal to buy Twitter, now called X. Larry Ellison also invested in Tesla in 2018 and served on the company’s board of directors.
The elder Ellison also personally guaranteed more than $40 billion in equity financing as part of Paramount’s bid to buy WBD.
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