Report: Elon Musk Takes $1 Billion Stake in CNN Parent Skydance

Elon Musk has reportedly invested $1 billion in Skydance, the entertainment company controlled by David Ellison, according to people familiar with the deal who spoke to Semafor. The investment gives the world’s richest man a potential foothold in the media empire behind CNN and Paramount, sending a jolt through an industry where he has some of his most vocal critics. The transaction could also signal the start of a broader alliance with the Ellison family, whose media interests include CNN, HBO, CBS and Paramount. That prospect may be especially uncomfortable for liberal commentators such as CNN anchor Jake Tapper and HBO comedian John Oliver, both of whom have criticized Musk publicly. The investment adds an unexpected chapter to Musk’s long-running clash with CNN, which he has repeatedly mocked. In 2020, he asked, “What I find most surprising is that CNN still exists,” and in 2024 he said the network was “dying” after his dispute with former anchor Don Lemon.

Musk may now hold a financial interest in the very news organization he once ridiculed. There is no evidence that he plans to influence CNN’s programming, but his arrival as an investor is likely to prompt questions about the future direction of several major American news and entertainment brands. The $1 billion commitment comes as Skydance seeks new funding to improve its finances, cut expenses and rebuild its stock price after an aggressive expansion. Musk’s investment was reportedly completed around the same time as funding from other backers, including billionaire philanthropist and Skydance board member Laurene Powell Jobs.

The initial investment has prompted speculation that Musk could put considerably more money into Skydance. Veteran cable television executive John Malone suggested this week that a larger partnership may be developing, 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 valued at between $8 billion and $10 billion. Such a deal could give Musk a significant minority holding in the entertainment group, depending on the company’s valuation and the structure of any transaction. Musk’s relationship with the Ellison family dates back years. Larry Ellison, Oracle’s billionaire co-founder and David Ellison’s father, helped finance Musk’s $44 billion purchase of Twitter in 2022 with a contribution of about $1 billion. He also invested in Tesla in 2018 and served on its board.

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Larry Ellison has personally guaranteed more than $40 billion in equity financing for Paramount’s acquisition of Warner Bros., substantially expanding the family’s entertainment holdings. The combined business controls television networks, film studios and streaming services, as well as major franchises including Game of Thrones, The Last of Us, Yellowstone and NCIS. Its assets also include significant sports rights and news operations. For Musk, who has already become a major force in digital media through his ownership of X, access to that extensive content library could create new commercial opportunities.

One possible arrangement could see television programs, films or sporting events distributed through X, helping Musk move the platform beyond its social-media roots. That scenario remains speculative, and there is no official agreement to make Skydance content available on X. Musk has previously explored original programming, including proposed shows with former CNN anchor Don Lemon and sports broadcaster Jim Rome. A deeper relationship with Skydance could offer him a more substantial path into entertainment, while also creating potential opportunities involving Starlink, his satellite-internet network.

Skydance has been expanding its communications infrastructure and acquiring wireless spectrum as it seeks to compete more directly with established telecommunications companies. A closer partnership could theoretically combine the company’s deep entertainment catalogue with Musk’s increasingly powerful distribution networks. Malone cited the existing financial relationship between Musk and the Ellisons as a reason further cooperation would not be surprising. “Who helped Elon finance Twitter when he bought it? Larry Ellison,” Malone said at the Paley Center. “How did Larry Ellison come up with some of the money to put into the creation of Skydance? Tesla stock.”

For David Ellison, Musk’s investment comes as he works to reshape the company through cost-cutting and technology initiatives, 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 also become one of the Republican Party’s most prominent financial supporters, spending heavily to back President Donald Trump and conservative candidates. His investment in a company that controls CNN and HBO therefore raises questions about whether political considerations could eventually affect editorial or programming decisions.