Elon Musk leaves woke media elites shaking in their boots as he invests $1billion in CNN and Paramount’s parent company

Elon Musk has reportedly poured $1 billion into the media empire behind CNN and Paramount, potentially giving the billionaire a powerful new foothold in Hollywood and sending shockwaves through an industry packed with his fiercest critics.

The world’s richest man has acquired a stake in Skydance, the entertainment giant controlled by David Ellison, according to people familiar with the investment who spoke to Semafor.

The blockbuster deal could mark the beginning of a much larger alliance between Musk and the Ellison family, whose sprawling media interests include CNN, HBO, CBS and Paramount.

And for liberal commentators who have spent years attacking the Tesla and SpaceX boss, the prospect of Musk gaining influence over their corporate parent company could prove particularly uncomfortable.

Among those potentially affected are CNN anchor Jake Tapper and HBO comedian John Oliver, both of whom have publicly criticized Musk.

Musk’s investment marks an extraordinary twist in his long-running feud with CNN, a network he has repeatedly ridiculed. 

In 2020, he sneered, ‘What I find most surprising is that CNN still exists,’ while four years later he declared that ‘CNN is dying’ following a bitter falling-out with former anchor Don Lemon. 

Now, the billionaire could find himself holding a financial stake in the very news organization he once openly mocked.

While there is no evidence Musk intends to interfere with their programming, his arrival as an investor raises questions about the future direction of some of America’s most prominent news and entertainment brands.

The $1 billion investment comes as Skydance seeks fresh capital to strengthen its finances, reduce costs and revive its stock price following its ambitious expansion.

Musk’s involvement was reportedly finalized around the same time as investments from other backers, including billionaire philanthropist and Skydance board member Laurene Powell Jobs.

The investment has fueled speculation that the billionaire could eventually commit considerably more money to the company.

Veteran cable television mogul John Malone suggested this week that a much bigger partnership could be in the works, potentially involving Musk’s satellite internet business, Starlink.

‘I think there’s a deal coming there,’ Malone said during an appearance at the Paley Center. ‘I would not doubt for a minute that before very long you’re going to see an announcement.’

According to The Hollywood Reporter, Malone floated the possibility of an investment worth between $8 billion and $10 billion.

A transaction of that magnitude could potentially give Musk a substantial minority stake in the entertainment conglomerate, depending on its valuation and the structure of the investment.

The relationship between Musk and the Ellisons stretches back years.

David’s father, Oracle billionaire Larry Ellison, helped bankroll Musk’s $44 billion takeover of Twitter in 2022, contributing around $1 billion.

Ellison also invested in Tesla in 2018 and served on its board of directors.

Larry Ellison has personally guaranteed more than $40 billion in equity financing for Paramount’s acquisition of Warner Bros., a transaction that dramatically expanded the family’s entertainment holdings.

The resulting business controls a collection of television networks, film studios and streaming properties.

Its assets include blockbuster franchises such as Game of Thrones, The Last of Us, Yellowstone and NCIS, alongside major sporting rights and news operations.

For Musk, whose ownership of X has already transformed him into a powerful figure in digital media, access to such an extensive entertainment library could open lucrative new possibilities.

One potential arrangement could involve distributing television programs, movies or sporting events through X, helping Musk expand the platform beyond social media.

Such a partnership is speculative and there has been no official agreement to make Skydance programming available on X.

The billionaire has previously experimented with original video content, including proposed shows featuring former CNN anchor Don Lemon and sports broadcaster Jim Rome.

His growing relationship with Skydance could provide a much more substantial route into the entertainment industry.

There are also potentially enormous opportunities involving Starlink, Musk’s satellite internet network.

The company has been expanding its communications infrastructure and acquiring wireless spectrum as it seeks to compete more directly with established telecommunications providers.

A closer relationship with Skydance could theoretically combine an extensive entertainment catalogue with Musk’s increasingly powerful distribution networks.

Malone pointed to the financial connections between Musk and the Ellisons as evidence that further cooperation would hardly be surprising.

‘Who helped Elon finance Twitter when he bought it? Larry Ellison,’ he said at his Paley Center appearance.

‘How did Larry Ellison come up with some of the money to put into the creation of Skydance? Tesla stock.’

For David Ellison, meanwhile, Musk’s investment arrives at a critical moment.

The media executive has been attempting to overhaul the business through cost-cutting measures and technological innovation, including a greater emphasis on artificial intelligence.

‘We are building a true product and tech team,’ Ellison told CNBC earlier this month.

‘We are a big believer that artificial intelligence is a tool for artists, not the other way around.’

Musk has become one of the Republican Party’s most influential financial supporters, spending vast sums backing President Donald Trump and conservative candidates.

His investment in a company controlling CNN and HBO also raises questions about whether political considerations could eventually influence editorial or programming decisions.