Skydance Corp (NYSE:SKYD) shares are trending Thursday following a report that Elon Musk invested about $1 billion in the company. Here’s what you should know.
- Skydance shares are experiencing downward pressure. Why is SKYD stock retreating?
Musk Reportedly Invests $1 Billion in Skydance
Musk has invested around $1 billion in Skydance, according to a Semafor report citing people familiar with the matter.
Musk’s investment arrives as Skydance cuts costs and tries to lift its share price, the people reportedly said. Musk was not the only backer to put in equity. Board member Laurene Powell Jobs and other Skydance investors also contributed around the same period, according to people familiar with the matter.
The news comes after Semafor reported in September that Paramount was exploring an equity request to Musk, one of several wealthy individuals CEO David Ellison was weighing.
Malone Predicts Skydance Starlink Deal
Musk’s public compliments for the Ellisons and Skydance have people wondering about a larger partnership with Starlink, his low-Earth-orbit satellite network. Billionaire cable executive John Malone said Tuesday at the Paley Center that he expects that idea to play out.
“I think there’s a deal coming there,” Malone said, adding that channels will need to be re-engineered into streams rather than staying traditional linear networks.
Malone also said he would not be surprised by an announcement soon. He noted that Larry Ellison helped finance Musk’s purchase of Twitter and used Tesla stock to fund part of Skydance’s creation.
Skydance Stock Rebounds From October Low
Skydance stock has swung up and down this month. After reaching $9.84 on Oct. 6, shares slid to $6.61 by Oct. 19, a drop of about 33%. Shares have tried to stabilize since that low, and Thursday’s trading stayed inside the rebound attempt without setting a new 52-week extreme.
The stock whipsawed Thursday between $7.54 and $8.46. Trading at current levels, Skydance is 20.5% below its $9.84 peak and 18.3% above its $6.61 trough. Falling below $6.61 would create a new 52-week low and signal that the recent base has failed.
SKYD Shares Are Falling
SKYD Price Action: Skydance shares were down 1.14% at $7.78 at the time of publication on Thursday, according to Benzinga Pro.
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