Paramount in Talks with Elon Musk for Equity Stake as Stock Nears Lows

Paramount Skydance has held talks about bringing Elon Musk in as an equity investor, Semafor reported on Wednesday. Meanwhile, the company's stock has been trading close to its lowest levels in years.

CEO David Ellison is seeking high-net-worth individuals to purchase newly issued shares, generating additional capital following the Warner Bros. Discovery takeover.

Reason Behind Paramount's Interest in Musk's Capital

Paramount struck a deal to acquire Warner Bros. Discovery (WBD), which owns CNN, HBO, and the Warner Bros. studio, for $30 a share in cash. The offer valued WBD at $108 billion including debt, per a February company release.

The Ellison family and RedBird Capital Partners put up $43.6 billion in equity, along with an additional $54 billion in debt financing.

Larry Ellison, the Oracle co-founder and David's father, provided a personal guarantee for over $40 billion of that equity, according to Semafor. Additional investors would help distribute that risk.

Musk and the elder Ellison have a long-standing relationship. Larry Ellison contributed $1 billion to Musk's 2022 acquisition of Twitter. He also invested in Tesla back in 2018 and served on its board for several years.

Musk, who achieved the status of the world's first trillionaire in June, is among a number of wealthy potential investors being considered. The size of any potential stake has not been disclosed.

NEW @semafor: Paramount executives have discussed an equity injection from @elonmusk, as the company looks to diversify its cap table and shore up its financial picture. $PSKY $WBDhttps://t.co/5vJDZ03H7e

— Rohan Goswami (@rogoswami) September 23, 2026

Shares of Paramount Approach Lows Not Seen in Years

On Wednesday afternoon, Paramount's Class B stock (PSKY) climbed 0.8% to $10.19, as reported by Yahoo Finance. That modest uptick does little to offset a 74.6% decline over the last five years.

The current price is under half of the 52-week peak of $20.86. The 52-week trough stands at $7.62.

For most of the past three years, shares have traded in a range of roughly $10 to $15. Back in early 2021, when the company was still called ViacomCBS, they reached as high as $95.

Paramount resolved an antitrust case filed by state attorneys general earlier this week, clearing an obstacle to the transaction. A short-lived rally triggered by that development has subsequently dissipated.

Paramount has settled an antitrust lawsuit brought by a dozen State Attorneys General led by California’s Rob Bonta, the last obstacle to closing its acquisition of Warner Bros. Discovery, Deadline has confirmed.

Paramount shares are up 9% on the news. WBD gained 10% trading at…

— Deadline (@DEADLINE) September 21, 2026

Potential Musk Involvement Might Attract Regulatory Attention

A Musk investment, per Semafor's report, would represent a show of confidence from a billionaire who commands a loyal base of retail investors.

But the report also points to political risks. During the 2024 election, Democrats expressed unease over Musk's financial influence and his ownership of X (formerly Twitter).

According to the report, even a minority stake by Musk in CNN and CBS would probably cause concern in Washington, even though he would likely not have any formal decision-making power. No firm commitment has been disclosed.