Skydance shares plunge 22% after warrant distribution following Warner Bros. Discovery acquisition
Skydance Corp. completed an $78 billion cash acquisition of Warner Bros. Discovery and assumed $33.1 billion of debt, leaving net debt near $80 billion. On Wednesday the company issued about 471 million warrants, prompting a NYSE price adjustment of –19.4 cents and a 22% drop in its stock. The market cap fell to under $40 billion, later rebounding to $36.6 billion after a modest recovery.
Why it matters
The sharp price decline and warrant issuance reduced Skydance’s market value by more than half, affecting shareholders and potentially influencing index fund holdings. The high debt load and cost‑saving targets raise concerns about the company’s ability to meet its financial projections.
Key facts
- 1Skydance completed an $78 billion cash acquisition of Warner Bros. Discovery. variety.com
- 2The deal added $33.1 billion of Warner Bros. Discovery debt to Skydance, bringing net debt to nearly $80 billion. variety.com
- 3Skydance issued about 471 million warrants to Class B shareholders. variety.com
- 4The NYSE reduced Skydance’s share price by 19.4 cents to account for the warrant issuance. variety.com
- 5Skydance’s stock fell 22% on Wednesday after the warrant distribution. variety.com
- 6The company’s market capitalization dropped to under $40 billion, then to $36 billion after the price drop, and rose to $36.6 billion after a 2.8% rebound. variety.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.