Skydance Shares Plunge After Distributing 470 Million Stock Warrants
Skydance Corp. shares fell 22.2% after the company distributed 470.7 million stock warrants to shareholders following its $110 billion acquisition of Warner Bros. Discovery.
Skydance Corporation shares dropped as much as 26% on Wednesday, closing down 22.2% at $7.06 per share. The decline followed the company's distribution of approximately 470.7 million stock warrants to shareholders on October 13.
Eligible shareholders received one warrant for each Class B common share held as of October 5, granting them the right to purchase shares at $12 each. If all warrants are exercised, the company could raise roughly $5.7 billion. The distribution comes after Skydance completed a $110 billion acquisition of Warner Bros. Discovery, a deal that consolidated brands including CNN, CBS, HBO Max, and Paramount+.
CEO David Ellison stated the merger is intended to improve competition against streaming and technology giants like Amazon and Netflix. The combined company, which trades on the New York Stock Exchange under the ticker SKYD, plans to merge Paramount+ and HBO Max into a single service. The company is targeting $6 billion in savings while managing approximately $80 billion in debt.
