Exclusive / Paramount weighs tapping Musk for equity investment - Semafor
Paramount, looking to firm up its financial picture as it digests Warner Bros. Discovery, is looking for fresh sources of cash. Executives at the company have discussed asking Elon Musk to become part of a syndicate of equity investors into Paramount, according to people familiar with the matter.
Musk’s name is one of a number of wealthy individuals that Paramount CEO David Ellison has considered tapping for the syndicate, the people said. Musk and David Ellison’s father, Oracle founder Larry Ellison, have long been close, and it is in part the elder Ellison’s money — and connections — that made Paramount’s takeover of Warner Bros. possible. Larry Ellison has personally guaranteed more than $40 billion of the equity financing for Paramount’s acquisition of Warner Bros.
Larry Ellison invested $1 billion in Musk’s 2022 deal to take X, formerly Twitter, private. He also invested in Tesla in 2018, and served on the company’s board of directors for years.
The size of a potential Musk investment could not be determined. A spokesperson for Paramount declined comment. Musk did not return a request for comment.
An investment from Musk would be a significant vote of confidence in the combined Paramount Warner Bros. from a businessman who also has a devoted retail investor following. A check from Musk or other big financial backers would also give Paramount a more diversified investor base, and reduce Larry Ellison’s financial burden.
But having Musk in this deal would also be politically fraught: Musk’s dollars and political influence were concerning to Democrats during the 2024 election, given his control of X. The possibility of him having even partial ownership in CNN and CBS would likely raise alarm bells in Washington, even though it is unlikely Musk would have formal input over the company’s operations.
