Paramount Skydance is considering inviting Elon Musk to participate in an equity investment as Chief Executive David Ellison seeks additional funding for the planned acquisition of Warner Bros. Discovery. Paramount shares remain near multi-year lows, keeping investor attention focused on the size of the financing, the company’s debt burden and the prospects for integrating the businesses.
Warner Bros. Discovery Deal Creates Fresh Funding Needs
Paramount has agreed to acquire Warner Bros. Discovery for $30 in cash per share. The transaction, which includes debt, values the company at $108 billion and would bring assets including CNN, HBO and the Warner Bros. film studio under Paramount’s ownership.
To support the acquisition, the Ellison family and RedBird Capital Partners have committed $43.6 billion in equity financing, alongside $54 billion in loans. Oracle founder Larry Ellison, David Ellison’s father, has personally guaranteed more than $40 billion of the acquisition financing.
Bringing in additional equity investors could help spread the funding burden currently carried by existing backers and guarantors. However, Paramount has not disclosed how much Musk might invest or what stake he could receive, and there is no indication that the two sides have reached a final commitment.
Musk and Larry Ellison Have Long-Standing Ties
Musk and Larry Ellison have maintained several financial and business connections. Larry Ellison invested $1 billion in Musk’s 2022 acquisition of Twitter. He also invested in Tesla in 2018 and served on the electric-car maker’s board for several years.
Musk is one of several wealthy investors being considered. If he takes part, his capital would go into a media group with significant film, streaming and news assets. There is currently no indication that he would receive formal management authority or control over editorial decisions.
Paramount Shares Remain Down 74.6% in Five Years
Paramount’s Class B shares trade under the ticker PSKY. The stock rose 0.8% to $10.19 on the afternoon of Sept. 23, but the move did little to change its longer-term performance: shares have fallen 74.6% over the past five years.
The stock is currently below half its 52-week high of $20.86, while the 52-week low stands at $7.62. Over the past three years, Paramount shares have spent most of their time trading between $10 and $15. In early 2021, when the company was still known as ViacomCBS, the stock briefly traded above $95.
The depressed share price could increase dilution pressure if Paramount raises capital in public markets. It also leaves potential investors weighing the company’s post-deal cash flow, debt repayment obligations and integration plans. For Paramount, attracting strategic or financial investors would not merely add acquisition funding; it would also shape how the market assesses the transaction’s capital structure.
Antitrust Settlement Removes One Deal Obstacle
Earlier this week, Paramount reached a settlement with state attorneys general in an antitrust lawsuit, removing one obstacle to the transaction. The news briefly lifted the stock, but the gains later faded as investors continued to wait for clearer details on financing and deal execution.
If Musk ultimately invests, the market may view his participation as financial support for Paramount’s transaction plans. The impact would still depend on the size of the investment, the equity terms and the level of debt left after the acquisition. Paramount has not announced a formal investment commitment from Musk, and its shares remain close to the $7.62 52-week low.