After Larry Ellison helped Elon Musk buy Twitter, American billionaire John Malone predicted new investment from Tesla CEO in Skydance; and here's how it has come true
Elon Musk has reportedly invested about $1 billion in Skydance. The funding followed American billionaire John Malone's prediction that the Tesla CEO would back the media company. According to a Semafor report, the investment comes as Skydance looks to cut costs, strengthen its financial position, and support its stock price. Malone previously suggested that Musk could invest in Skydance, citing the long-standing relationship between Musk and Oracle founder Larry Ellison , who helped finance Musk's $44 billion Twitter acquisition in 2022.
Malone also predicted that Musk's business interests could lead to a broader partnership between Skydance and SpaceX's satellite internet subsidiary, Starlink. While the investment has materialised, the wider partnership remains possible but unconfirmed.
What John Malone predicted about Elon Musk's investment in Skydance
According to reports, Musk's investment in Skydance came alongside equity investments from other backers, including board member Laurene Powell Jobs. The investment follows earlier reports that Skydance's parent company, Paramount, was considering an equity injection from Musk.
Speaking at the Paley Center for Media's International Council Summit, Malone predicted that Musk could invest billions of dollars in Skydance and potentially establish a global content distribution agreement involving SpaceX.
“Who helped Elon finance Twitter when he bought it [for $44 billion in 2022]? Larry Ellison. Okay. How did Larry Ellison come up with some of the money to put into the creation of Skydance? Tesla stock. And I would not doubt for a minute that before very long you’re gonna see an announcement,” Malone said.
He added that a potential agreement could include a SpaceX investment in Skydance to help reduce the media company's debt, along with a global content distribution arrangement.
“I predict – big prediction – that you’ll see a global output deal for Skydance with SpaceX, and an investment by SpaceX into Skydance, to de-lever Skydance and take a little bit of the burden off [Skydance CEO] David Ellison’s shoulders, because he’s taking on a pretty big pile of debt,” Malone said.
Malone had also suggested that the companies could explore a cross-investment arrangement worth $8 billion to $10 billion. However, the reported $1 billion investment is separate from that broader prediction, and no one has confirmed that the proposed SpaceX partnership has been finalised.
How Larry Ellison connects Musk and Skydance
Larry Ellison, Oracle co-founder, has longstanding financial and personal ties to Musk. He invested $1 billion in Musk's 2022 acquisition of Twitter, when the social media platform was taken private and later renamed X.
Ellison has long served on Tesla's board of directors and has invested in the company. With his son David Ellison at the helm of Skydance, the Ellison family's media aspirations have been bolstered by his connections and financial assistance.
Larry Ellison has committed substantial financial support to Paramount's acquisition of Warner Bros. Discovery, including personally guaranteeing more than $40 billion in equity financing, according to reports.
The merger brought together Paramount and Warner Bros. Discovery under the Skydance-led business. The combined company faces a substantial debt burden, making additional capital and cost-reduction measures important considerations for its management.
Musk's investment could provide additional financial support as Skydance works on its business and technology strategy. However, the details of any broader collaboration involving his companies remain unconfirmed.
Why Malone sees a potential role for Starlink
Malone's prediction also focused on how Skydance could distribute its content as traditional television businesses face pressure from streaming platforms and online video services.
“He has an eroding linear business,” Malone said of David Ellison's challenge. “It’s a huge, but shrinking, business. He’s gonna have to re-engineer all of those channels, and figure out how they morph into streams themselves rather than just traditional linear.”
A partnership with Starlink could potentially give Skydance another route to distribute entertainment content, particularly in markets where internet connectivity remains a challenge. However, such an arrangement would require more detail on the proposed services and commercial terms.
David Ellison has also highlighted technology's importance to the company's future. In a CNBC interview earlier this month, he said, “We are building a true product and tech team,” adding, “We are a big believer that artificial intelligence is a tool for artists, not the other way around.”
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