Elon Musk Reportedly Takes $1B Stake in CNN Parent Skydance

Elon Musk has reportedly invested $1 billion in the media empire linked to CNN and Paramount, potentially giving the billionaire an influential new position in Hollywood and unsettling an industry where many of his most outspoken critics work. People familiar with the transaction told Semafor that Musk acquired a stake in Skydance, the entertainment company led by David Ellison. The deal could be the first step toward a broader partnership with the Ellison family, whose media interests span 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 be especially awkward. CNN anchor Jake Tapper and HBO comedian John Oliver are among those who have publicly taken aim at him. The investment also adds a striking new chapter to Musk’s long-running dispute 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 public feud with former anchor Don Lemon.

Musk could now hold a financial interest in the very news organization he once derided. There is no indication that he plans to intervene in editorial decisions or programming, but his arrival as an investor is likely to prompt questions about the future of several major American media brands. The $1 billion commitment comes as Skydance looks to raise capital, shore up its finances, cut expenses and support its share price after a period of aggressive expansion. Musk’s investment was reportedly completed at about the same time as commitments from other investors, including billionaire philanthropist and Skydance board member Laurene Powell Jobs.

The deal has also sparked speculation that Musk may eventually invest far more in the company. John Malone, the veteran cable television executive, suggested this week that a larger partnership could be under consideration, potentially involving Musk’s satellite internet venture, 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 discussed a possible investment ranging from $8 billion to $10 billion. A deal of that size could give Musk a significant minority position in the entertainment group, depending on the company’s valuation and the final structure. Musk’s relationship with the Ellison family dates back several years. Larry Ellison, the Oracle co-founder and David Ellison’s father, helped finance Musk’s $44 billion purchase of Twitter in 2022 with a contribution of roughly $1 billion. He also invested in Tesla in 2018 and joined its board.

Larry Ellison has personally guaranteed more than $40 billion in equity financing for Paramount’s proposed acquisition of Warner Bros., a transaction that would significantly enlarge the family’s entertainment portfolio. The combined company would control television networks, movie studios and streaming services, with assets including hit franchises such as Game of Thrones, The Last of Us, Yellowstone and NCIS. It would also hold major 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 broad content library could create new commercial opportunities.

One possible arrangement would see television shows, films or live sports distributed through X, helping Musk push the platform beyond its social-media roots. That scenario remains speculative, and no official agreement has been announced to bring Skydance content to X. Musk has previously explored original programming, including proposed shows with former CNN host Don Lemon and sports broadcaster Jim Rome. A closer relationship with Skydance could offer him a far larger entry point into entertainment. Starlink, his satellite internet network, could also become part of a broader commercial relationship.

Starlink has been expanding its communications infrastructure and acquiring wireless spectrum as it seeks to compete more directly with established telecom companies. A closer Skydance relationship could, in theory, pair a vast entertainment catalogue with Musk’s growing distribution capabilities. Malone cited the existing financial ties between Musk and the Ellisons as a reason that additional 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 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 also emerged as one of the Republican Party’s most prominent financial backers, spending heavily to support President Donald Trump and conservative candidates. His investment in a business that controls CNN and HBO is therefore likely to raise questions about whether political interests could eventually affect editorial policy or programming choices.