Elon Musk’s $1 Billion Investment in CNN Parent Stirs Media

Elon Musk has reportedly invested $1 billion in the media company behind CNN and Paramount, giving the billionaire an unexpected foothold in Hollywood and potentially rattling an industry where many of his most vocal critics work.

People familiar with the transaction told Semafor that Musk has taken a stake in Skydance, the entertainment powerhouse led by David Ellison.

The deal could be the first step toward a broader relationship between Musk and the Ellison family, whose media holdings extend across CNN, HBO, CBS and Paramount.

For liberal commentators who have spent years criticizing the Tesla and SpaceX founder, Musk’s potential influence over their corporate parent would create an especially awkward dynamic.

CNN anchor Jake Tapper and HBO comedian John Oliver are among the prominent figures who have publicly taken aim at Musk.

The investment represents a remarkable turn in Musk’s protracted dispute with CNN, a network he has repeatedly mocked in public.

In 2020, Musk wrote, “What I find most surprising is that CNN still exists.” Four years later, after his highly publicized feud with former anchor Don Lemon, he said, “CNN is dying.”

Musk may now become a financial stakeholder in the same news organization he once dismissed so aggressively.

There is no indication that Musk plans to influence editorial or entertainment decisions. Even so, his entry as an investor is prompting questions about the future course of several of America’s biggest media brands.

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

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

The deal has also prompted speculation that Musk may ultimately put far more money into the company.

Cable television veteran John Malone suggested this week that a larger alliance could be taking shape—one that might include Musk’s satellite internet company, Starlink.

“I think there’s a deal coming there,” Malone said at an appearance at the Paley Center. “I would not doubt for a minute that before very long you’re going to see an announcement.”

According to The Hollywood Reporter, Malone raised the possibility of an investment valued at between $8 billion and $10 billion.

A deal on that scale could give Musk a significant minority holding in the entertainment conglomerate, depending on Skydance’s valuation and the final terms of the transaction.

The relationship between Musk and the Ellisons stretches back years.

David’s father, Oracle billionaire Larry Ellison, helped bankroll Musk’s $44 billion takeover of Twitter in 2022, contributing around $1 billion.

Ellison also invested in Tesla in 2018 and served on its board of directors.

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

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The resulting business controls a collection of television networks, film studios and streaming properties.

Its assets include blockbuster franchises such as Game of Thrones, The Last of Us, Yellowstone and NCIS, alongside major sporting rights and news operations.

For Musk, whose ownership of X has already transformed him into a powerful figure in digital media, access to such an extensive entertainment library could open lucrative new possibilities.

One potential arrangement could involve distributing television programs, movies or sporting events through X, helping Musk expand the platform beyond social media.

Such a partnership is speculative and there has been no official agreement to make Skydance programming available on X.

The billionaire has previously experimented with original video content, including proposed shows featuring former CNN anchor Don Lemon and sports broadcaster Jim Rome.

His growing relationship with Skydance could provide a much more substantial route into the entertainment industry.

There are also potentially enormous opportunities involving Starlink, Musk’s satellite internet network.

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

A closer relationship with Skydance could theoretically combine an extensive entertainment catalogue with Musk’s increasingly powerful distribution networks.

Malone pointed to the financial connections between Musk and the Ellisons as evidence that further cooperation would hardly be surprising.

‘Who helped Elon finance Twitter when he bought it? Larry Ellison,’ he said at his Paley Center appearance.

‘How did Larry Ellison come up with some of the money to put into the creation of Skydance? Tesla stock.’

For David Ellison, meanwhile, Musk’s investment arrives at a critical moment.

The media executive has been attempting to overhaul the business through cost-cutting measures and technological innovation, including a greater emphasis 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 supporters, spending vast sums backing President Donald Trump and conservative candidates.

His investment in a company controlling CNN and HBO also raises questions about whether political considerations could eventually influence editorial or programming decisions.