Billionaire Elon Musk has reportedly invested $1 billion U.S. in entertainment company Skydance (SKYD).
Skydance is the company recently formed from the merger of entertainment giants Paramount and Warner Bros. Discovery, a deal that was valued at $110 billion U.S.
Musk’s investment in Skydance comes as the company looks to cut costs following the merger, which left it with $86.8 billion U.S. of debt.
Paramount closed its acquisition of Warner Bros. Discovery on Oct. 6, naming the combined entity Skydance.
CEO David Ellison is now trying to merge two film studios, multiple streaming platforms, and many TV networks into one entity.
Skydance has said it expects to achieve $6 billion U.S. of cost savings over the next three years, though some analysts say that is a drop in the bucket compared to what it owes.
Musk’s commitment is part of a wider effort by Ellison to raise equity investments in Skydance. Neither Musk nor Skydance has commented on reports of the $1 billion U.S. investment.
Musk has a history with the Ellison family.
David’s father, Oracle (ORCL) co-founder Larry Ellison, invested $1 billion U.S. in Musk’s 2022 deal to purchase Twitter, now called X.
Larry Ellison has also invested in Tesla (TSLA) and served on the electric vehicle maker’s board of directors.
SKYD stock has declined 20% in the past month to trade at $7.92 U.S. per share.
