Paramount Eyes Elon Musk as Potential Investor as Warner Bros. Deal Takes Shape

Paramount could add Elon Musk as a potential investor after a promising update on its Warner Bros. Discovery deal. It recently cleared a major hurdle in an antitrust lawsuit.

According to a report from Semafor, Paramount executives have discussed asking Elon Musk to join an equity syndicate as the company seeks fresh sources of cash. At the same time, it moves forward with its acquisition of Warner Bros. Discovery.

Notably, the report is preliminary, and Paramount has not confirmed Musk’s potential involvement.

Paramount is exploring new sources of financing as the Warner Bros. deal moves forward

The latest report also claims that Paramount CEO David Ellison may approach the tech billionaire and SpaceX CEO for a potential investment because of Musk’s longstanding ties to David’s father and Oracle founder Larry Ellison.

Another reason why Musk may join Paramount is that Larry is partly involved in its $110 billion takeover of Warner Bros. Discovery. He has personally guaranteed over $40 billion of the equity financing for Paramount’s acquisition of Warner Bros.

Musk is one of the several wealthy individuals that Paramount may consider for investment. As for its ambitious deal, the company recently settled an antitrust lawsuit initially filed by the Attorneys General of 12 states. The lawsuit was led by California’s Rob Bonta, who had strongly criticized the merger.

Paramount CEO David Ellison reached an agreement with the attorneys general a few days ago. According to a source, Bonta stated that he would hold Paramount’s “feet to the fire” to ensure the company stuck to its commitments for proposed structural remedies.

The commitments include Paramount’s agreement to certain guardrails for CNN, financial penalties tied to Ellison’s promise to deliver 30 movies a year, and a temporary separation between the studios.

Additionally, Paramount has agreed to invest $1.5 billion in U.S. film production and in protecting and creating jobs. A formal announcement of the settlement has yet to be made.

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