CNBC_ American billionaire Elon Musk has invested approximately $1 billion in Skydance, a move that coincides with the company's efforts to cut costs following the completion of the merger between Paramount and Warner Bros. Discovery to form the new entity under the name Skydance.
This financial contribution comes at a time when the company is working on integrating two major film production studios, Paramount and Warner Bros., alongside the streaming platforms Paramount+ and HBO Max, as well as a number of corporate functions associated with television networks and two news units, according to CNBC.
Skydance aims to achieve cost savings of $6 billion over three years, despite the new entity facing a debt burden approaching $80 billion.
Musk's commitment is part of broader efforts by Skydance to raise equity investments, according to a report by Semafor, which was the first to break the news.
There was no immediate comment from representatives of Musk or Skydance in response to CNBC's requests for comment.
Skydance shares dropped by about 1% during Thursday's trading following the announcement of the deal.
Musk has long-standing ties with billionaire Larry Ellison, co-founder of Oracle and father of Skydance Co-CEO David Ellison.
Larry Ellison invested $1 billion in Musk's acquisition of Twitter in 2022, which later became known as X. Ellison also invested in Tesla in 2018 and served on the company's board of directors.
Larry Ellison also provided personal guarantees of over $40 billion in equity financing as part of Paramount's offer to acquire Warner Bros. Discovery.
