By Lucretia Hughes
NEW YORK — Paramount CEO David Ellison is considering turning to Elon Musk as a potential equity investor as the media company looks for additional capital surrounding its acquisition of Warner Bros. Discovery, according to a new report.
Paramount executives have discussed asking Musk to join a syndicate of wealthy investors providing equity to the company, Semafor reported Wednesday, citing people familiar with the discussions.
No agreement with Musk has been announced, and the size of any potential investment remains unknown. Paramount declined to comment to Semafor, while Musk did not respond to the publication’s request for comment.
Musk is reportedly one of several wealthy individuals Ellison has considered approaching rather than the sole prospective investor.
The discussions come as Paramount works to strengthen its financial position surrounding its acquisition of Warner Bros. Discovery, a transaction that would bring major entertainment and news properties under the same corporate umbrella.
The possibility of Musk joining the investment group carries additional significance because of his longstanding relationship with Ellison’s father, Oracle co-founder Larry Ellison.
Larry Ellison invested $1 billion in Musk’s 2022 acquisition of Twitter, which Musk subsequently renamed X. Ellison also previously invested in Tesla and served on Tesla’s board of directors.
Larry Ellison is already playing a major financial role in Paramount’s Warner Bros. transaction. Semafor reported that he has personally guaranteed more than $40 billion of the equity financing supporting the acquisition.
Bringing additional wealthy investors into Paramount could spread that financial exposure across a larger group.
The potential involvement of Musk also attracts attention because Paramount’s media holdings include CBS, while Warner Bros. Discovery owns CNN. Any investment would therefore place one of the world’s most prominent technology executives among the investors in a company controlling major American entertainment and news assets.
But an equity investment would not, by itself, mean Musk would control either newsroom.
Semafor reported that Musk would be unlikely to have formal involvement in company operations under the arrangement being contemplated. The terms of any possible investment have not been disclosed because no deal with Musk has been announced.
The distinction is important as speculation surrounding the report spreads online.
At this stage, the verified development is that Paramount executives have considered approaching Musk as part of a broader effort to attract additional equity investors. Reports stating that Musk has already purchased Paramount, invested in the company or obtained control of CBS or CNN would go beyond what has been established publicly.
The discussions nevertheless illustrate how dramatically the American media business continues to change.
Musk already controls X and oversees companies including Tesla and SpaceX. An eventual Paramount investment would extend his financial interests into another major sector, although the extent of that involvement would depend on the size, voting rights and other terms attached to any investment.
For David Ellison, the immediate issue is capital.
For the media industry, the larger question is who will finance — and ultimately hold ownership stakes in — the companies controlling some of America’s most recognizable television, film and news brands.
For now, Musk’s name is on the list.
His money is not yet in the deal.
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