David Ellison is weighing whether to approach Elon Musk as a possible equity investor in Paramount as the company moves closer to completing its $111 billion merger with Warner Bros. Discovery.
A report citing anonymous sources says Musk is among several wealthy individuals Ellison has considered for a syndicate that would invest in Paramount. No other prospective members of that investor group were identified, and the potential size of any Musk investment remains unknown.
The possibility appears to be at a preliminary stage. Paramount declined to comment, while a representative for Musk did not immediately respond to a request for comment.
Musk, a one-time Trump administration official, leads SpaceX, Tesla and X, among other businesses. His net worth was estimated at approximately $950 billion as of Wednesday, making him the world’s richest person.
Paramount’s Warner Bros. deal nears a key hurdle
The investment question comes as Paramount’s proposed combination with Warner Bros. Discovery approaches the finish line. Paramount has reached a settlement with 12 state attorneys general that would resolve their antitrust lawsuit challenging the transaction.
The judge overseeing the case has scheduled a Thursday hearing to review the proposed consent decree. If the judge approves the settlement, the Paramount-Warner Bros. merger is expected to close in approximately two weeks.
Ellison already has considerable financial backing in place for the deal. His father, Oracle founder Larry Ellison, has personally guaranteed $46.7 billion in equity financing.
Paramount has also secured $24 billion in commitments from the sovereign wealth funds of Saudi Arabia, Qatar and the United Arab Emirates. Paramount has said those three funds would collectively own 38.5% of the combined Paramount-Warner Bros.
Another regulatory piece fell into place last week, when the FCC approved Paramount’s request to allow foreign entities to hold as much as 49.5% of its equity if the Warner Bros. Discovery merger is completed.
Larry Ellison’s previous business connections to Musk add another layer to the possibility of an investment discussion. He put $1 billion into Musk’s 2022 transaction to take Twitter private before the platform was renamed X. Larry Ellison also invested in Tesla in 2018 and served on its board for several years.
Settlement sets production and theatrical requirements
The proposed agreement with the state attorneys general would place a series of operating obligations on the merged entertainment company.
Under the settlement’s headline terms, Paramount would be barred from selling either the Paramount Studios lot or the Warner Bros. lot in the state for at least five years.
The company would also be required to spend at least an additional $300 million annually on film production in the United States. That commitment would total $1.5 billion over five years.
The consent decree also establishes minimum theatrical-output requirements. Paramount-Warner Bros. would have to release at least 30 movies theatrically during the first two years following the merger. Ellison has repeatedly promised that level of output.
For years three through five, the required number would increase to at least 32 theatrical releases. Wide-release movies would be subject to a 45-day window.
News operations are also covered by the proposed settlement. The combined company would be monitored by a “news editorial independence board,” which would create “guiding editorial and journalism principles” for CNN and CBS News.
What Happens Next?
The immediate focus is Thursday’s court hearing and whether the judge approves the proposed consent decree. That decision is a key remaining step before the merger can close on its expected timeline.
Any role for Musk is considerably less certain. He has not been confirmed as an investor, no investment amount has been established, and it remains unclear whether Ellison will ultimately approach him or any of the other unnamed individuals under consideration.