Elon Musk has invested roughly $1 billion in Skydance, a day after media mogul John Malone predicted that SpaceX could strike a multibillion-dollar deal with David Ellison’s media empire.
The investment comes as Skydance looks to cut costs and strengthen its financial position following its acquisition of Warner Bros. Discovery, Semafor reported Thursday, citing people familiar with the matter. A Skydance representative declined to comment to TheWrap, while SpaceX has not responded to a request for comment.
Speaking at the Paley International Council Summit Wednesday, Malone predicted that SpaceX could reach an agreement with Skydance involving $8 billion to $10 billion in cross-investment and a potential global content distribution partnership. It’s unclear whether Musk’s reported investment was made personally or through SpaceX, or whether a larger deal is in the works.
“I think there’s a deal coming there,” Malone said, pointing to the longstanding financial relationship between Musk and the Ellison family.
That connection runs through Oracle co-founder Larry Ellison, David Ellison’s father and a major financial backer of Skydance. The elder Ellison committed $1 billion to Musk’s 2022 acquisition of Twitter, now X, and previously served on Tesla’s board.
“Who helped Elon finance Twitter when he bought it? Larry Ellison,” Malone said Wednesday. “I would not doubt for a minute that before very long, you’re gonna see an announcement.”
According to Semafor, Musk’s investment came together around the same time as additional equity investments from other Skydance backers, including board member Laurene Powell Jobs. The outlet reported in September that the company was considering bringing Musk in as an investor.
Skydance completed its $110 billion acquisition of Warner Bros. Discovery on Oct. 6, bringing Warner Bros., HBO and CNN under the same corporate umbrella as Paramount and CBS. The combined company is targeting at least $6 billion in annualized cost savings and other synergies within three years as it integrates the businesses, but Wall Street investors are skeptical that will be enough to enable Skydance to service the $80 billion in debt it took on to close the deal.
Musk’s reported investment would provide additional capital as David Ellison works to integrate the company’s film studios, television networks and streaming operations.
Malone, the former chair emeritus of Warner Bros. Discovery, specifically identified SpaceX’s Starlink satellite internet service as a potential distribution partner for Skydance’s television and streaming properties.
The longtime cable executive argued that Skydance needs to rethink how its traditional television channels reach consumers as audiences migrate toward streaming and digital platforms. He also warned that YouTube’s growing dominance presents a major competitive challenge for established media companies.
For now, neither the structure of Musk’s reported investment nor the size of any resulting ownership stake has been publicly disclosed. And while Malone’s prediction has drawn renewed attention following Thursday’s report, there has been no confirmation of a broader SpaceX-Skydance partnership.
