SpaceX may invest up to $10 billion in Skydance, says media mogul John Malone

NEW DELHI: In Hollywood, the next blockbuster deal may come from outer space. SpaceX, Elon Musk’s aerospace and satellite internet company, could invest between $8 billion and $10 billion in Skydance, potentially pairing a financial boost for the debt-laden entertainment group with a global content distribution opportunity for its Starlink business, according to a Deadline report.

Media mogul John Malone floated the possibility while speaking with Liberty Global chief executive Mike Fries at the Paley Center for Media’s International Council Summit on Wednesday. Malone suggested that the companies could announce an arrangement combining an investment with a global content distribution agreement, although no deal has been confirmed.

Malone linked the potential transaction to the existing financial ties between Musk and Oracle co-founder Larry Ellison, whose son David Ellison leads Skydance. Larry Ellison helped finance Musk’s $44 billion acquisition of Twitter in 2022, while Tesla shares also played a role in financing his investment in Skydance.

Malone said such an arrangement could ease the financial pressure on David Ellison as he takes charge of the enlarged media business. For SpaceX, the proposed tie-up could open a new route into entertainment distribution, with Starlink potentially carrying content to audiences worldwide.

The speculation comes after the $110 billion merger involving Paramount and Warner Bros. Discovery closed earlier this month, creating the enlarged Skydance business. The combined group faces a substantial debt burden, reported at nearly $80 billion, with leverage of 6.5 times trailing earnings.

The scale of the debt has raised investor concerns and prompted credit rating downgrades. A fresh investment from SpaceX could provide capital to strengthen the company’s balance sheet, although the size and structure of any transaction remain uncertain.

A distribution partnership could also offer strategic benefits. Starlink, which provides satellite-based internet connectivity, could gain a foothold in entertainment delivery, while Skydance could explore additional routes to reach viewers beyond conventional television and established streaming platforms.

However, Malone’s comments represent an expectation about a possible deal, not confirmation that negotiations have concluded or that an agreement has been signed.

Malone also highlighted the challenges facing David Ellison’s management team as traditional television continues to lose ground to streaming. Skydance will need to find ways to shift its legacy television businesses towards digital distribution while competing in an increasingly crowded entertainment market.

Larry Ellison, meanwhile, faces a broader strategic question: how social media, entertainment and streaming might work together to challenge the reach of platforms such as YouTube and Google. Malone suggested that the company’s ambitions would need to extend beyond a straightforward contest with Netflix, particularly as artificial intelligence reshapes the media landscape.

For Starlink, a potential tie-up would represent an expansion beyond its core connectivity business. For Skydance, it could mean fresh financial firepower and another route to audiences at a time when both debt and digital disruption are reshaping the entertainment industry.

The prospect is striking: a satellite internet business could help finance a Hollywood giant while exploring new ways to deliver its content. Whether the idea reaches the negotiating table or remains a tantalising possibility, the intersection of space technology and entertainment is becoming harder to ignore.