Elon Musk has put roughly $1 billion into Skydance, Semafor reports
Semafor says Musk's deal came together alongside other equity investments, including from board member Laurene Powell Jobs. Neither Skydance nor Musk has confirmed it.
By Marcus Rodriguez ·
For information only, not investment advice. Prices delayed.
Tickers: SKYD
Elon Musk has invested roughly $1 billion in Skydance ($SKYD), Semafor reported Thursday, citing people familiar with the matter. The outlet called it "a much needed financial injection as the company looks to cut costs and bolster its stock price." According to Semafor, the deal came together at roughly the same time as equity investments from Skydance's other investors, including board member Laurene Powell Jobs.
Neither Skydance nor Musk has confirmed it. Skydance declined to comment and a representative for Musk didn't respond, the Seattle Times reported. CNBC described Musk's commitment, per Semafor, as part of a wider effort by Skydance to raise equity. The reports don't say how big his stake is, what he paid or what form the investment took.
The money lands on a big balance sheet. Paramount closed its acquisition of Warner Bros. Discovery on Oct. 6 and named the combined company Skydance. CNBC says the company expects $6 billion in cost savings over three years but faces a debt burden of nearly $80 billion; the Seattle Times puts total debt at nearly $87 billion and says the shares have tumbled since the deal closed over those debt concerns.
John Malone had predicted a Musk deal, pointing to Larry Ellison's long ties to Musk, and the Seattle Times says he suggested an investment of about $8 billion to $10 billion. That was a prediction, not a report. Skydance shares initially spiked on the news before reversing course, per the Seattle Times, and were down 1.02% at $7.79 as of Oct 22, 4:00 PM ET.
Sources
Tags: mergers-acquisitions · big-tech · markets-moves