Elon Musk has invested approximately $1bn in Skydance, the media company formed after Paramount's $111bn merger with Warner Bros Discovery, according to reports. The investment came alongside fresh funding from existing investors including Laurene Powell Jobs, the widow of Steve Jobs and a board member.
David Ellison, son of Oracle co-founder Larry Ellison, leads the newly combined media empire, which now oversees Paramount and Warner Bros's movie studios, HBO Max, CBS News and CNN. The deal strengthens financial ties between two of Donald Trump's major backers. Larry Ellison previously invested $1bn in Musk's acquisition of X in 2022 and gave $45m to support Trump's re-election bid in 2024. Musk spent more than $290m on Trump's re-election campaign and has invested more than $350m backing Republicans in current midterm elections.
Skydance co-CEOs David Ellison and Ynon Kreiz, who previously led Mattel, told employees that integrating the two companies would involve layoffs, stating: "Integrating two companies will bring change, including difficult decisions that affect our workforce." The company has set a target of more than $6bn in cost savings over the next three years. Los Angeles county officials estimate this goal could result in the loss of 4,500 film and television jobs in the region.
Before the merger completed, a coalition of 12 states including California and New York sued Paramount, arguing the deal would "extinguish" competition and lead to "higher prices, lower quality and less content for film and television". A September settlement agreement required Skydance to release at least 30 films and more than 180 television shows annually while ensuring CBS and CNN maintain editorial independence.
For investors and media workers, the merger signals major consolidation in entertainment, with significant job losses expected across production sectors.