Elon Musk has reportedly invested around A$1.42 billion in David Ellison’s Skydance, strengthening his financial ties with the Ellison family as the media group manages a huge debt load following its expansion.

The investment, first reported by Semafor, comes shortly after Skydance completed its takeover of Warner Bros. Discovery on 6 October.

That deal created a much larger entertainment business spanning Warner Bros., HBO and CNN alongside Skydance’s existing CBS and Paramount+ operations.

The combined company was carrying about A$117.5 billion in debt and A$11.3 billion in cash as of 30 June, according to financial statements filed with the US Securities and Exchange Commission.

Musk’s reported investment is notable because Oracle co-founder Larry Ellison, David Ellison’s father, previously committed about A$1.42 billion to Musk’s 2022 acquisition of Twitter, now known as X.

Larry Ellison has also backed Tesla in the past and served on the electric vehicle company’s board until 2022.

His financial support has also played a major role in his son’s media expansion. Securities filings show Ellison and an associated trust guaranteed about A$65.1 billion in payments and other obligations connected with the Warner Bros. Discovery transaction.

Shares in companies including Oracle, Tesla and SpaceX were also reportedly pledged as collateral for bank financing used to support the acquisition.

Musk’s exact ownership stake in Skydance has not been disclosed, and it remains unclear whether the investment comes with a board seat or other governance rights.

Other investors, including Skydance board member Laurene Powell Jobs, reportedly made additional equity investments around the same period.

Skydance is now attempting to reduce costs following the Warner transaction, with David Ellison targeting at least A$8.55 billion in annualised savings within three years.

The company has also pointed to artificial intelligence as a way to improve production efficiency while maintaining an ambitious content slate of at least 30 theatrical films a year and more than 180 television programs.

Ellison has argued that AI should be used as a production tool rather than a replacement for creative talent.

The expanded company also faces the challenge of managing traditional television assets as audiences continue moving towards streaming services.

Cable industry veteran John Malone has suggested Skydance could eventually explore a distribution relationship with Musk’s Starlink satellite network, although no agreement has been announced.

Neither Musk nor Skydance has publicly confirmed the reported investment.