Paramount weighs Elon Musk investment as it seeks new equity for merger

Paramount is exploring a potential equity injection from Elon Musk as part of a broader search for investors to support its merger with Warner Bros. The talks, described as preliminary, involve CEO David Ellison evaluating Musk alongside other high-net-worth individuals. The merger, cleared after a settlement of antitrust lawsuits, still leaves the combined entity with more than $80 billion in debt and about $3 billion in annual free cash flow, limiting funds for new productions.

Initial financing of roughly $46.7 billion came from Larry Ellison and RedBird Capital, later expanded to include sovereign funds such as Saudi Arabia’s Public Investment Fund, Qatar Investment Authority and Abu Dhabi Investment Authority. Adding Musk could provide fresh equity without adding debt, but it also raises questions about possible editorial interference given Paramount’s ownership of several outlets. The outcome will affect how the studio finances its film and TV slate moving forward.