Paramount Considers Elon Musk as Investor in Warner Bros Merger

Paramount CEO David Ellison is considering approaching Elon Musk to join a group of investors for the company's $110 billion takeover of Warner Bros. Discovery. The potential investment would grant Musk a stake in major news outlets including CNN and CBS News, though reports suggest he would likely lack formal input over daily operations.

The merger recently cleared its final hurdle after Paramount settled an antitrust lawsuit brought by California Attorney General Rob Bonta. As part of the settlement, Paramount must increase domestic production and establish a News Editorial Independence Board for both CBS News and CNN.

While Larry Ellison has personally guaranteed over $40 billion of the financing, David Ellison is seeking additional equity investors to diversify the base and provide a vote of confidence. The prospect of Musk's involvement has caused panic among CNN staff, who cite his management of the social media platform X and the Department of Government Efficiency as reasons for concern. Once the merger closes, David Ellison will control a media portfolio encompassing HBO, CBS, CNN, Paramount+, and HBO Max.