Paramount has held internal discussions about approaching Elon Musk to join the syndicate of equity investors supporting its $111 billion purchase of Warner Bros. Discovery, according to a Semafor report citing people familiar with the matter. The talks remain preliminary, and the potential size of any Musk commitment has not been established.
The consideration reflects an effort by Paramount executives to broaden the funding base behind one of the largest media transactions in recent years. Musk is said to be among a handful of high-net-worth individuals that Paramount CEO David Ellison has weighed contacting, the report indicated.
Ellison-Musk ties stretch back years
The discussions are rooted in a longstanding relationship between Musk and Larry Ellison, the Oracle co-founder and father of Paramount's chief executive. The elder Ellison has been the linchpin of the financing structure, personally guaranteeing more than $40 billion of the equity backing the Warner Bros. bid.
The two billionaires have previously supported each other's business interests. Ellison put $1 billion into Musk's 2022 take-private of Twitter, now known as X, and was an early Tesla investor in 2018, serving on the automaker's board for several years.
Why additional capital matters
Forbes reported earlier this year that Larry Ellison may lack sufficient liquid assets to fully cover his roughly $45.7 billion equity commitment without liquidating part of his Oracle stake. He has sold only about $4.7 billion of Oracle stock this century and holds under $10 billion in cash, according to the publication's analysis, making Oracle shares the most probable source of funds if a shortfall must be addressed.
Adding outside investors such as Musk would directly reduce that pressure. Paramount has already lined up substantial foreign backing: Middle East sovereign wealth funds — Saudi Arabia's Public Investment Fund, the Qatar Investment Authority, and the Abu Dhabi Investment Authority — are contributing approximately $24 billion to the bid, per SEC filings. Combined with other foreign holdings, overseas ownership of the merged company would reach 49.5%.
Deal timeline tightens
The merger cleared a significant obstacle on September 21, when Paramount settled litigation brought by 12 state attorneys general and the Writers Guild of America, averting a trial that had been scheduled for March 2027. David Ellison has said the transaction could close within two weeks.
A self-imposed deadline adds urgency: Paramount must complete the deal by September 30, 2026, or incur a $7 million daily "ticking fee." Shares of Paramount Skydance rose about 2% on Tuesday to close at $10.11, then slipped 1.49% on Wednesday. Morgan Stanley lifted its price target on the stock to $11.50 from $10 this week, while Barclays maintained a Sell rating.
Political considerations
A Musk investment would signal confidence in the combined company from a figure with a large retail following and would further diversify Paramount's investor base while trimming Larry Ellison's exposure, according to the Semafor report. It also carries political risk.
Musk's financial and political influence, amplified by his ownership of X, drew scrutiny from Democrats during the 2024 election cycle. Even a partial stake in a company that owns CNN and CBS would likely attract attention in Washington, though he would be unlikely to hold any formal operational control.
This article is for informational purposes only and does not constitute financial advice.
