Elon Musk makes $1 billion investment in Ellison's Skydance

Elon Musk has put roughly $1 billion into Skydance, the David Ellison-led company behind Paramount’s takeover of Warner Bros., according to people familiar with the matter. The cash comes as the company works to cut costs and lift its stock price.

The investment came together around the same time as equity infusions from other backers, including board member Laurene Powell Jobs.

It deepens long-standing ties between Musk and the Ellisons. Larry Ellison put $1 billion into Musk’s 2022 takeover of Twitter, invested in Tesla in 2018 and served on its board for years. He has also personally guaranteed more than $40 billion of equity financing for the Warner Bros. acquisition.

The deal is fueling speculation about a broader tie-up with Musk’s Starlink. Cable billionaire John Malone said Tuesday he expected an announcement between the two, arguing the company will need to rebuild its traditional TV channels for streaming.

Musk and Paramount did not immediately respond to requests for comment.