Elon Musk Invests $1 Billion in David Ellison's Skydance Amid Heavy Debt Load

Elon Musk has made a roughly $1 billion equity investment in Skydance Corp., the media and entertainment company headed by David Ellison, according to Semafor, with CNBC and other outlets confirming the deal. The investment provides a significant financial injection for Skydance, which has been grappling with a heavy debt burden following its mergers with Paramount and Warner Bros. Discovery.

The deal came together alongside equity investments from other Skydance backers, including board member Laurene Powell Jobs and Middle East sovereign wealth funds, as the company works to cut costs and bolster its stock price. The investment carries a personal dimension as well: David Ellison's father, Oracle co-founder and billionaire Larry Ellison, helped finance Musk's takeover of the platform formerly known as Twitter four years ago.

Skydance shares fell roughly 1% in afternoon trading on the day the investment was reported, even as Musk's capital injection underscored broader efforts by the company to shore up its balance sheet. Separately, cable mogul John Malone has predicted Musk could ultimately invest up to $10 billion in Skydance, with a potential tie-in giving SpaceX's Starlink satellite subsidiary a foothold in the entertainment business, though that larger figure has not been confirmed.