Skydance

Elon Musk just put about $1 billion into Skydance, and the stock still turned red

Semafor broke the news this morning, citing people familiar with the matter

$Skydance(SKYD.US) jumped as high as $8.46 within minutes, up 7.5% on the day

Then it reversed. Shares are now near $7.74, down 1.7% from Wednesday's $7.87 close, per Yahoo Finance data

The money arrives alongside fresh equity from other Skydance investors, including board member Laurene Powell Jobs, as the company cuts costs after its Warner Bros. Discovery takeover

It also comes full circle. Larry Ellison put $1 billion into Musk's 2022 deal to take X private, and he personally guaranteed more than $40 billion of the equity behind the Warner Bros. deal

Even with the Musk check, $Skydance(SKYD.US) is still about 55% below its 52-week high of $17.16

When a $1 billion vote of confidence from Musk can't hold a pop for 10 minutes, the market is saying it cares more about debt and cost cuts than famous names on the cap table. The real test is whether this cash buys time for the streaming pivot or just plugs a hole

Source: StockMarket.News