Elon Musk has reportedly invested $1 billion in the media empire behind CNN and Paramount, potentially giving the billionaire a significant new foothold in Hollywood and unsettling an industry where many of his most vocal critics work.
The world’s richest man has taken a stake in Skydance, the entertainment company controlled by David Ellison, according to people familiar with the investment who spoke to Semafor.
The major investment could be the first step toward a broader alliance between Musk and the Ellison family, whose extensive media holdings include CNN, HBO, CBS and Paramount.
For liberal commentators who have spent years criticizing the Tesla and SpaceX chief, the possibility of Musk gaining influence within their corporate parent could be especially awkward.
CNN anchor Jake Tapper and HBO comedian John Oliver are among those who have publicly attacked Musk and could be affected by the billionaire’s new connection to the company.
Musk’s investment adds an unexpected chapter to his long-running dispute with CNN, a network he has repeatedly mocked.
In 2020, he wrote, ‘What I find most surprising is that CNN still exists.’ Four years later, after a bitter dispute with former anchor Don Lemon, he declared that ‘CNN is dying.’
The billionaire could now hold a financial interest in the same news organization he once attacked so openly.
Elon Musk has invested $1bn in Skydance, the entertainment giant behind CNN, Paramount and HBO, giving him a financial foothold in a media empire that employs some of his fiercest critics
CNN may have an unlikely new investor in its parent company after Musk, a frequent critic of the network’s coverage, invested $1 billion in Skydance
Skydance CEO David Ellison is pursuing an ambitious expansion of his family’s entertainment empire, with Musk’s huge investment offering additional financial firepower
There is no evidence that Musk plans to interfere with programming, but his arrival as an investor is already raising questions about the future direction of some of America’s most prominent news and entertainment brands.
The $1 billion investment arrives as Skydance looks for new capital to shore up its finances, cut costs and restore its stock price after an ambitious expansion.
Musk’s investment was reportedly completed around the same time as contributions from other backers, including billionaire philanthropist and Skydance board member Laurene Powell Jobs.
The deal has also prompted speculation that Musk may eventually commit substantially more money to the company.
Veteran cable television mogul John Malone suggested this week that a far larger partnership could be under discussion, potentially involving Musk’s satellite internet venture, Starlink.
‘I think there’s a deal coming there,’ Malone said during an appearance at the Paley Center. ‘I would not doubt for a minute that before very long you’re going to see an announcement.’
According to The Hollywood Reporter, Malone raised the possibility of an investment valued at between $8 billion and $10 billion.
A deal of that size could give Musk a sizable minority holding in the entertainment conglomerate, depending on the company’s valuation and the investment’s final structure.
Paramount is now controlled by Skydance, whose expanding collection of television networks, film studios and streaming services could give Musk a powerful new path into Hollywood
The Warner Bros. studio lot in California is yet another part of the sprawling entertainment empire assembled by the Ellison family
Oracle billionaire Larry Ellison, left, pictured with his son David who owns and controls Skydance, the media empire that has attracted Musk’s latest investment
The relationship between Musk and the Ellisons stretches back years.
David’s father, Oracle billionaire Larry Ellison, helped bankroll Musk’s $44 billion takeover of Twitter in 2022, contributing around $1 billion.
Ellison also invested in Tesla in 2018 and served on its board of directors.
Larry Ellison has personally guaranteed more than $40 billion in equity financing for Paramount’s acquisition of Warner Bros., a transaction that dramatically expanded the family’s entertainment holdings.
The resulting business controls a collection of television networks, film studios and streaming properties.
Its assets include blockbuster franchises such as Game of Thrones, The Last of Us, Yellowstone and NCIS, alongside major sporting rights and news operations.
For Musk, whose ownership of X has already transformed him into a powerful figure in digital media, access to such an extensive entertainment library could open lucrative new possibilities.
One potential arrangement could involve distributing television programs, movies or sporting events through X, helping Musk expand the platform beyond social media.
Such a partnership is speculative and there has been no official agreement to make Skydance programming available on X.
Musk reneged on a multimillion-dollar deal with former CNN anchor Don Lemon in March 2024
CNN’s Jake Tapper and John Oliver, whose HBO show airs on another Paramount-linked rival, have both been outspoken critics of Elon Musk
The billionaire has previously experimented with original video content, including proposed shows featuring former CNN anchor Don Lemon and sports broadcaster Jim Rome.
His growing relationship with Skydance could provide a much more substantial route into the entertainment industry.
There are also potentially enormous opportunities involving Starlink, Musk’s satellite internet network.
The company has been expanding its communications infrastructure and acquiring wireless spectrum as it seeks to compete more directly with established telecommunications providers.
A closer relationship with Skydance could theoretically combine an extensive entertainment catalogue with Musk’s increasingly powerful distribution networks.
Malone pointed to the financial connections between Musk and the Ellisons as evidence that further cooperation would hardly be surprising.
‘Who helped Elon finance Twitter when he bought it? Larry Ellison,’ he said at his Paley Center appearance.
‘How did Larry Ellison come up with some of the money to put into the creation of Skydance? Tesla stock.’
Musk’s growing media interests are particularly significant given his close political ties to President Donald Trump and his enormous financial support for Republican candidates
Larry Ellison personally guaranteed more than $40 billion in equity financing for Paramount’s Warner Bros. acquisition and helped bankroll Musk’s $44 billion takeover of Twitter in 2022
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For David Ellison, meanwhile, Musk’s investment arrives at a critical moment.
The media executive has been attempting to overhaul the business through cost-cutting measures and technological innovation, including a greater emphasis on artificial intelligence.
‘We are building a true product and tech team,’ Ellison told CNBC earlier this month.
‘We are a big believer that artificial intelligence is a tool for artists, not the other way around.’
Musk has become one of the Republican Party’s most influential financial supporters, spending vast sums backing President Donald Trump and conservative candidates.
His investment in a company controlling CNN and HBO also raises questions about whether political considerations could eventually influence editorial or programming decisions.