Elon Musk’s $1 Billion Investment Puts CNN and Paramount in Focus

Elon Musk has reportedly invested $1 billion in the media empire behind CNN and Paramount, potentially giving the billionaire a powerful new position in Hollywood and sending ripples through an industry that includes many of his most outspoken critics.

People familiar with the investment told Semafor that Musk has taken a stake in Skydance, the entertainment company controlled by David Ellison.

The major investment could be the first step toward a broader partnership between Musk and the Ellison family, whose extensive media holdings include CNN, HBO, CBS and Paramount.

For liberal commentators who have repeatedly criticized the Tesla and SpaceX founder, Musk’s potential influence over their corporate parent could create an awkward new dynamic.

Those critics include CNN anchor Jake Tapper and HBO comedian John Oliver, both of whom have publicly taken aim at Musk.

The investment represents a remarkable turn in Musk’s long-running conflict with CNN, a network he has frequently mocked.

In 2020, he wrote, ‘What I find most surprising is that CNN still exists,’ before declaring in 2024 that ‘CNN is dying’ after his highly publicized dispute with former anchor Don Lemon.

Musk could now hold a financial interest in the very news organization he once derided so openly.

Elon Musk has invested $1bn in Skydance, the entertainment company behind CNN, Paramount and HBO, giving him a financial foothold in a media empire that employs some of his most prominent critics

CNN could have an unlikely new investor in its parent company after Musk, a longtime critic of the network’s coverage, invested $1 billion in Skydance

Skydance CEO David Ellison is leading an ambitious expansion of his family’s entertainment holdings, with Musk’s sizable investment providing additional financial support

There is no indication that Musk plans to influence the companies’ programming, but his arrival as an investor raises questions about the future of some of America’s best-known news and entertainment brands.

The $1 billion investment comes as Skydance looks to raise capital, improve its finances, cut costs and rebuild its share price after an aggressive period of expansion.

Musk’s investment was reportedly completed at around the same time as funding from other backers, including billionaire philanthropist and Skydance board member Laurene Powell Jobs.

The deal has prompted speculation that Musk may ultimately invest substantially more in the company.

Veteran cable television executive John Malone suggested this week that a far larger partnership could be under consideration, potentially involving Musk’s satellite-internet company, 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.’

The Hollywood Reporter said Malone had raised the possibility of an investment of between $8 billion and $10 billion.

A deal of that size could give Musk a significant minority interest in the entertainment conglomerate, depending on the company’s valuation and the final terms.

Paramount is now controlled by Skydance, whose expanding portfolio of television networks, film studios and streaming services could give Musk a powerful new entry into Hollywood

The Warner Bros. studio lot in California is another component of the wide-ranging entertainment empire assembled by the Ellison family

Oracle billionaire Larry Ellison, left, with his son David, who owns and controls Skydance, the media company that has attracted Musk’s latest investment

Musk’s relationship with the Ellison family dates back several years.

Larry Ellison, David’s father and the Oracle co-founder, helped finance Musk’s $44 billion purchase of Twitter in 2022, contributing approximately $1 billion.

Ellison also invested in Tesla in 2018 and served as a member of its board.

Larry Ellison has personally guaranteed more than $40 billion in equity financing for Paramount’s acquisition of Warner Bros., a deal that significantly expanded the family’s entertainment interests.

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The combined business oversees a broad collection of television networks, film studios and streaming platforms.

Its properties include major franchises such as Game of Thrones, The Last of Us, Yellowstone and NCIS, as well as prominent sports rights and news operations.

For Musk, whose ownership of X has already made him a major force in digital media, access to such a deep entertainment library could create new commercial opportunities.

One possible arrangement would involve distributing television shows, movies or sports events through X as Musk seeks to expand the platform beyond social networking.

That possibility remains speculative, and no official agreement has been announced to distribute Skydance programming on X.

Musk withdrew from a multimillion-dollar agreement with former CNN anchor Don Lemon in March 2024

CNN’s Jake Tapper and John Oliver, whose HBO program airs through another Paramount-linked rival, have both been vocal critics of Elon Musk

Musk has previously explored original video programming, including proposed shows involving former CNN anchor Don Lemon and sports broadcaster Jim Rome.

His expanding relationship with Skydance could offer a far more significant path into the entertainment business.

Starlink, Musk’s satellite-internet network, could also present major opportunities.

The company has been building out its communications infrastructure and acquiring wireless spectrum as it moves to compete more directly with established telecommunications providers.

A closer Skydance relationship could, in theory, pair a vast entertainment catalogue with Musk’s increasingly extensive distribution networks.

Malone cited Musk’s existing financial ties to the Ellison family as a reason that additional cooperation would not be unexpected.

‘Who helped Elon finance Twitter when he bought it? Larry Ellison,’ he said during 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 expanding media interests are especially notable given his close political ties to President Donald Trump and his substantial financial support for Republican candidates

Larry Ellison personally guaranteed more than $40 billion in equity financing for Paramount’s Warner Bros. acquisition and helped fund Musk’s $44 billion purchase of Twitter in 2022

For David Ellison, Musk’s investment comes at a pivotal point for the company.

The media executive has been reshaping the business through cost reductions and technological upgrades, including a stronger focus 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 backers, spending heavily to support President Donald Trump and conservative candidates.

His investment in the company that controls CNN and HBO is likely to fuel further questions about whether political considerations could eventually affect editorial or programming decisions.