Production Company Behind ‘Top Gun: Maverick’ Raises Capital

Investors in the new funding round include private-equity firm

KKR

KKR 2.57%

and existing backers the Ellison family, investment firm RedBird Capital Partners, which has major investments in media companies and sports teams and Chinese tech investment giant

Tencent Holdings Ltd.

TCEHY -2.19%

The Ellison family remains Skydance’s majority shareholder.

After a mixed record producing big-budget action flicks, including Star Trek and Terminator sequels, Skydance this year landed its biggest hit with “Top Gun: Maverick,” the

Tom Cruise

-led sequel co-produced and distributed by Paramount Pictures, which became 2022’s runaway hit of the box office, grossing nearly $1.5 billion globally.

In May, The Wall Street Journal reported that Tencent, owner of the Chinese communications app WeChat, had initially invested in the movie, but backed out in late 2019 as U.S.-China relations deteriorated.

David Ellison said in an interview that Skydance is currently profitable and highlighted new projects in its interactive division, including a recently announced partnership with

Walt Disney Co.

’s Marvel Entertainment to develop a superhero videogame set in World War II-era Europe.

KKR’s investment underscores a growing trend of private-equity firms backing midsize media companies in Hollywood that produce content to sell to or distribute via larger studios.

Mr. Ellison said he values KKR’s focus on what he described as quality content. “KKR is an incredibly disciplined partner,” he said. “I think we see the world similarly.”

Earlier this year, Skydance signed a multiyear deal to produce live-action films for

Apple Inc.,

ending its longstanding distribution deal with

Paramount Global,

although Mr. Ellison’s company will continue to have the right to finance and produce films in the lucrative Mission: Impossible, Star Trek and Transformers franchises for Paramount.

Skydance Animation is led by

John Lasseter,

who served as chief creative officer of Disney’s Pixar Animation Studios until resigning in 2018 over allegations that he touched and hugged employees inappropriately. At the time, he apologized to colleagues in a letter.

Skydance Animation’s first feature film, “Luck,” was released in August by Apple Studios, and its next animated feature “Spellbound” is due out next year.

The company’s sports division launched early this year and this month announced an exclusive deal with French soccer star

Kylian Mbappé

to produce sports-related content.

Write to Robbie Whelan at robbie.whelan@wsj.com

Investors in the new funding round include private-equity firm

KKR

KKR 2.57%

and existing backers the Ellison family, investment firm RedBird Capital Partners, which has major investments in media companies and sports teams and Chinese tech investment giant

Tencent Holdings Ltd.

TCEHY -2.19%

The Ellison family remains Skydance’s majority shareholder.

After a mixed record producing big-budget action flicks, including Star Trek and Terminator sequels, Skydance this year landed its biggest hit with “Top Gun: Maverick,” the

Tom Cruise

-led sequel co-produced and distributed by Paramount Pictures, which became 2022’s runaway hit of the box office, grossing nearly $1.5 billion globally.

In May, The Wall Street Journal reported that Tencent, owner of the Chinese communications app WeChat, had initially invested in the movie, but backed out in late 2019 as U.S.-China relations deteriorated.

David Ellison said in an interview that Skydance is currently profitable and highlighted new projects in its interactive division, including a recently announced partnership with

Walt Disney Co.

’s Marvel Entertainment to develop a superhero videogame set in World War II-era Europe.

KKR’s investment underscores a growing trend of private-equity firms backing midsize media companies in Hollywood that produce content to sell to or distribute via larger studios.

Mr. Ellison said he values KKR’s focus on what he described as quality content. “KKR is an incredibly disciplined partner,” he said. “I think we see the world similarly.”

Earlier this year, Skydance signed a multiyear deal to produce live-action films for

Apple Inc.,

ending its longstanding distribution deal with

Paramount Global,

although Mr. Ellison’s company will continue to have the right to finance and produce films in the lucrative Mission: Impossible, Star Trek and Transformers franchises for Paramount.

Skydance Animation is led by

John Lasseter,

who served as chief creative officer of Disney’s Pixar Animation Studios until resigning in 2018 over allegations that he touched and hugged employees inappropriately. At the time, he apologized to colleagues in a letter.

Skydance Animation’s first feature film, “Luck,” was released in August by Apple Studios, and its next animated feature “Spellbound” is due out next year.

The company’s sports division launched early this year and this month announced an exclusive deal with French soccer star

Kylian Mbappé

to produce sports-related content.

Write to Robbie Whelan at robbie.whelan@wsj.com