Executives at Paramount are reportedly contemplating inviting billionaire Elon Musk to invest in their $81 billion acquisition of Warner Bros. Discovery, a move that could exacerbate unrest among CNN’s workforce.
David Ellison, a prominent figure in Hollywood, is actively trying to strengthen his media empire’s finances in light of the upcoming merger. He’s been considering potential investors who might support the deal, but the specific amount of funding Paramount is seeking remains unknown.
Larry Ellison, David’s father and the founder of Oracle, has already committed over $40 billion in equity financing for the acquisition. Involving Musk, who is a close friend, could alleviate some of the financial pressure, according to reports.
However, an investment from Musk may stir discontent at CNN, where employees are anxious about possible job cuts and are uncertain about leadership under David’s impending management, insiders disclosed.
“It’s interesting that this news surfaces now,” noted a source within CNN, referring to the discussions about Musk’s potential involvement. The source also expressed concerns regarding California Governor Gavin Newsom, who has endorsed the merger fearing that Paramount’s departure could mean significant job losses in the state. “Not good for Gavin!” they added.
As part of a settlement with California’s Attorney General Rob Bonta, Paramount agreed to create independent editorial boards for both CBS News and CNN, although details about their powers are still unclear.
The settlement didn’t thoroughly address layoffs, heightening fears among employees at both networks about upcoming cuts. “When it rains…[it pours],” remarked one insider at CNN. “It’s quite frightening considering Musk’s actions with X and DOGE.”
Paramount has opted not to comment on these developments.
At CBS News, Bari Weiss, who was appointed editor-in-chief by David following his acquisition of Paramount, has faced backlash for letting go of veteran reporters on “60 Minutes” and for her management of newsroom content.
Larry Ellison has consistently supported Musk, the wealthiest individual globally, investing heavily in various ventures, including $1 billion in Musk’s acquisition of X (earlier Twitter) and serving on Tesla’s board.
Musk’s investment could enhance the new company’s image with investors, particularly given his loyal following in the investor community.
Meanwhile, his rocket firm, SpaceX, recently made headlines with a successful market debut, even though it’s reported that much of the company isn’t currently profitable.
This week, Paramount’s merger plans received a crucial green light after settling with the California Attorney General over an antitrust lawsuit.
Paramount has agreed to increase its domestic production by an additional $1.5 billion over the next five years and aims to release 30 films theatrically each year, eventually rising to 32 films after the initial two years. Each yearly slate is expected to feature 20 blockbusters and at least four independent films.
If Paramount fails to reach these production targets in any year, it may be compelled to sell Miramax Studios, known for classics like “Pulp Fiction.”
The settlement terms also stipulate that Paramount negotiate cable deals separately and enhance domestic production to 20% or even 30% of total films, up from the current 5%, contingent on certain tax credits being enacted by Congress.
As a result, David Ellison is positioned to become a significant figure in the entertainment industry, with authority over HBO Max, Paramount+, HBO, CBS, CNN, and numerous celebrated film titles.
