Musk pours $1B into Skydance as Ellison hunts for capital

What's the deal? Elon Musk has invested roughly $1 billion in SkydanceDealroom has a profile for this one. Try Dealroom →, according to people familiar with the matter. The injection arrives as the company works to cut costs and bolster its stock price.

Why now? SemaforDealroom has a profile for this one. Try Dealroom → reported in September that Paramount was weighing an equity injection from Musk. The deal came together at roughly the same time as equity investments from other Skydance backers, including board member Laurene Powell JobsDealroom has a profile for this one. Try Dealroom →.

What's the endgame? David Ellison, who recently poached MattelDealroom has a profile for this one. Try Dealroom →'s Ynon Kreiz to serve as co-CEO, can use Musk's capital to fund cost-cutting and technology efforts. "We are building a true product and tech team," Ellison said in a CNBCDealroom has a profile for this one. Try Dealroom → interview this month, adding that the company believes "artificial intelligence is a tool for artists, not the other way around."

Musk has publicly praised the Ellisons and Skydance, fuelling speculation of a broader partnership with StarlinkDealroom has a profile for this one. Try Dealroom →, Musk's low-earth-orbit satellite network. The ties run deep: Larry EllisonDealroom has a profile for this one. Try Dealroom → helped finance Musk's Twitter purchase, and cable executive John Malone noted that Ellison funded part of Skydance's creation with TeslaDealroom has a profile for this one. Try Dealroom → stock.

The signal: "I think there's a deal coming there," Malone said Tuesday at a Paley Center appearance, predicting that Skydance would need to "re-engineer" its channels into streams. Musk and Paramount did not immediately respond to requests for comment.

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Image credit: North Charleston