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Elon Musk invests $1 billion in CNN-owner Skydance: Report
The investment comes after Skydance looks to strengthen its finances after its Paramount merger.
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Elon Musk has invested roughly $1 billion in Skydance, Semafor reported on Thursday. Musk's alleged investment provided a major financial boost to the Hollywood studio as it seeks to cut costs, strengthen its balance sheet and accelerate its technology strategy following its merger with Paramount, according to the report by Semafor.
The investment was made alongside additional equity contributions from existing Skydance investors, including board member Laurene Powell Jobs, the publication reported. The funding comes after reports last month that Skydance was exploring an equity investment from Musk.
Musk, Ellison ties fuel partnership speculation
Musk has publicly praised Skydance chief executive David Ellison and Oracle co-founder Larry Ellison. This led to speculation that the investment could pave the way for broader collaboration between Skydance and Musk’s companies.
According to Semafor, industry observers have speculated that Starlink, Musk’s satellite internet business, could eventually partner with Skydance as traditional television distribution shifts toward streaming.
Cable billionaire John Malone also suggested such a partnership may emerge.
“He’s gonna have to re-engineer all of those channels, and figure out how they morph into streams themselves rather than just traditional linear,” Malone said during an appearance at the Paley Center, according to Semafor.
Malone also pointed to the long-standing relationship between Musk and the Ellison family. “Who helped Elon finance Twitter when he bought it? Larry Ellison,” Malone pointed out. He added that Larry Ellison previously used Tesla stock to help finance Skydance.
Earlier this month, David Ellison outlined Skydance’s technology ambitions during a CNBC interview. “We are building a true product and tech team,” Ellison said. “We are a big believer that artificial intelligence is a tool for artists, not the other way around.”
Also read: Elon Musk says ‘people will find ways to be happy’ if AI makes money and work obsolete in future
Investment follows major Hollywood consolidation
Investors overwhelmingly approved Paramount’s acquisition of Warner Bros last month, which is a deal valued at about $111 billion that is expected to reshape Hollywood, according to The Telegraph.
Unions have accused Ellison and his son David of editorial meddling following a series of cuts and adjustments to programming, notably on the company's signature news program 60 Minutes.
Earlier this year, Christiane Amanpour, CNN's longtime chief international anchor, denounced the "destruction, potentially" of 60 Minutes and the "ideological realignment of CBS." CNN's previous director general, Mark Thompson, has also insisted that Skydance “both understand and will completely embrace the philosophy and practice of the kind of independent news that CNN has always stood for.”
