David Ellison, co-chief executive officer of Skydance Corp. and SpaceX CEO Elon Musk.
Michael Ngale | Bloomberg Kent Nishimura AFP Getty Images
Elon Musk has made an investment in Skydance about $1 billion, according to a report from Semafor Thursday.
The financial injection comes as the company looks to cut costs. Paramount closed its acquisition of Warner Bros. Discovery on October 6, the name of the combined entity Skydance. Co-CEOs David Ellison and Ynon Kreiz are tasked with combining two major film studios in Paramount and Warner Bros., two popular streaming platforms – Paramount + and HBO Max – and several corporate functions to support the portfolio of TV networks and two news divisions.
Skydance has said it expects to see $6 billion in cost savings over three years, even though it faces a debt burden of nearly $80 billion.
Musk’s commitment is part of Skydance’s wider efforts to raise equity investment, Semafor reported. Representatives for Musk and Skydance did not immediately respond to CNBC’s request for comment.
Skydance shares fell about 1% after the report.
Ellison’s father, Larry Ellison, has a history with Musk. Oracle founder invested $1 billion in Musk’s 2022 deal to buy Twitter, now called X. Larry Ellison also invested in Tesla in 2018 and serves on the company’s board of directors.
The elder Ellison also secured more than $40 billion in equity financing in Paramount’s bid to take over WBD.