Musk's $1B stake at Skydance raises questions for CNN
Billionaires have their eyes set on the news media.
Elon Musk invests in CBS and CNN owner Skydance. Image by Cybernews/Shutterstock/favoritesphoto
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- Neither Musk nor Skydance has commented on the reported investment.
- The stake could equal about 2.6% of Skydance based on its current market value.
- The report adds to wider questions about billionaire influence in major news organizations.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
SpaceX founder Elon Musk, the world's richest man by net worth, has reportedly invested $1 billion in Skydance, the newly combined entertainment giant that owns CBS and CNN, among many other media brands.
Citing undisclosed "people familiar with the matter," Semafor reported that the investment was made around the same time as contributions from other investors. Neither Musk nor Skydance commented on the news.
Skydance was formed through Paramount's acquisition of Warner Bros. Discovery, while its shares began trading on the New York Stock Exchange under the ticker SKYD on October 6th. The combined business includes Paramount and Warner Bros. film studios, streaming services, television networks, and more.
The company's current market capitalization stands at around $39 billion. While it's unclear how large Musk's stake in the company is, if he has one, $1 billion would buy around 2.6% of Skydance at its current market capitalization.
Musk's media empire?
It's unclear what real influence Musk would have over the company, which owns multiple major media brands.
The billionaire already controls social media giant X, where he shares his controversial views, including pressuring Ukraine over Russia's invasion, with almost 242 million followers.
Meanwhile, Larry Ellison, Oracle's co-founder and father of Skydance CEO David Ellison, has a long-standing financial relationship with Musk. For example, according to Semafor, Larry Ellison invested $1 billion in Musk's 2022 acquisition of Twitter, now X.
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In its announcement of Paramount's completed acquisition of Warner Bros. Discovery on October 6th, Skydance said the combined company has $70 billion in revenue and is targeting more than $6 billion in run-rate synergies over the next 3 years.
Meanwhile, Musk is not the only billionaire strengthening his position in the media industry. For example, billionaire Amazon founder Jeff Bezos has owned The Washington Post since purchasing the paper for $250 million in 2013.
