Elon Musk has put about $1 billion into Skydance, the Ellison-run media company behind Paramount, according to Semafor, which cites people familiar with the deal. The cash arrives as the company tries to cut costs and lift its stock price. It came in around the same time as investments from other backers, including board member Laurene Powell Jobs. Semafor had reported back in September that Paramount was thinking about asking Musk to invest.

The move makes sense when you look at the friendships involved. Musk and Oracle founder Larry Ellison, father of Paramount CEO David Ellison, go way back. Larry put $1 billion into Musk's 2022 Twitter (now X) buyout, invested in Tesla, and sat on Tesla's board for years. He has also personally guaranteed more than $40 billion of the financing for Paramount's takeover of Warner Bros. Just a day before the news broke, cable billionaire John Malone predicted "there's a deal coming there."

People are already speculating about a bigger team-up, possibly involving Musk's Starlink satellite network. David Ellison, who brought in former Mattel boss Ynon Kreiz as co-CEO, has said he's building "a true product and tech team" and sees AI as "a tool for artists." Neither Musk nor Paramount responded to Semafor's request for comment.