The long process of getting the merger between Paramount Skydance (NASDAQ:PSKY) and Warner Bros. Discovery (NASDAQ:WBD) may be getting some financial help with a report that the world’s richest person has been approached to take equity in the combined company.
• Paramount Skydance stock is trading near recent lows. Where are PSKY shares going?
Elon Musk Reportedly Approached for Help
A new report says that Elon Musk could combine forces with friend and fellow top 10 billionaire Larry Ellison to help finance the deal between the two media giants.
Semafor reports that Musk and other wealthy individuals have been considered by Paramount Skydance CEO David Ellison.
Musk is currently the world’s richest person, worth $959 billion according to estimates from Bloomberg. Larry Ellison ranks seventh with a net worth of $205 billion.
The elder Ellison has already personally guaranteed over $40 million of the financing to get the deal done. It’s unknown how much Musk and others have been asked to put in for the deal.
The report on additional financing could mean the deal is closer to passing regulation and lawsuit tests and now needs to iron out the financial aspect of combining the companies.
Larry Ellison previously invested in Tesla and served on the board of directors of the EV company. Ellison also invested $1 billion in the Twitter acquisition completed by Musk to help take the social media company, now called X, private.
Potential Conflicts
A merger already facing concerns of political ties and regulation could see things complicated with Musk involved.
Musk spent a significant amount of money on the 2024 presidential election to help get Donald Trump elected and later led the Department of Government Efficiency. A role in the White House helped Musk get around some regulation on companies he leads.
Partial ownership of media outlets such as CNN and CBS through the combined merger by Musk could influence what the press says about the billionaire.
With ownership of X and several media companies, Musk could have significant control and impact on what the overall media says about himself, the companies he leads and Trump, of whom he is supportive.
Musk taking a stake in the combined company could also complicate the future release of the documentary film “Musk” from Alex Gibney. Warner Bros. unit HBO holds the streaming and TV rights to the film in North America.
Musk has been critical of the film and if he is involved in the new ownership of HBO, he’s likely to try and block the film’s future release from HBO.
Stock Price Action on Wednesday
Paramount Skydance stock is down 0.35% at $10.08 at publication.
Warner Bros. shares are down 0.37% to $30.72 at publication.
Photos: Shutterstock
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