Elon Musk Steps In With $1 Billion Equity Investment For Debt-Laden Skydance — Report

Elon Musk has invested $1 billion in the newly formed Skydance, according to a report, as the company seeks extra equity to manage the heavy debt taken on to acquire Warner Bros. Discovery. The investment matters because rising interest rates could make that debt more costly to service and squeeze the company’s cash flow.

The combined company, now called Paramount-Warner Bros. Discovery, closed its roughly $100 billion deal on 6 October and carries nearly $90 billion in debt. Larry Ellison personally guaranteed more than $40 billion of the equity financing, while Middle Eastern sovereign wealth funds led by Saudi Arabia are set to hold just under half of the combined company. Musk has ties to Ellison, but has not publicly commented on the reported investment; suggestions of a wider SpaceX partnership remain speculation.