Skydance Stock Drops 23.8% as Warrants Begin Separate Trading
On October 14, Skydance (NYSE: SKYD) stock fell by 23.8%, closing at $7.06 after warrants began trading separately from the company's shares on an ex-distribution date. The move triggered a valuation reset and led to increased trading volume of approximately 92 million shares — over five times its three-month average. Skydance, which went public in 2026, has since declined by about 26%. The warrants issued allow former Paramount Skydance (PSKY) Class B shareholders the right to purchase new SKYD stock at $12 per share until 2036. If all are exercised, it could raise around $5.7 billion for Skydance but would also increase its shares outstanding by roughly 10%. The company carries significant debt of about $80 billion against an expected adjusted EBITDA of $11.2 billion. The broader market saw declines as well: the S&P 500 fell 1.1%, and the Nasdaq Composite dropped nearly 1.9%. Other media stocks like Walt Disney (DIS) and Comcast (CMCSA) showed mixed performance, with modest gains.
Coverage
- Skydance Stock Drops 23.8% as Warrants Begin Separate Trading
- Skydance Shares Drop Nearly 23% Following Warrant Distribution Ex-Dividend Date
- Skydance Provides Details on Separate Trading of Class B Shares and Warrants
- Skydance Stock Drops Over 27% Due to Warrant Dividend Restructuring
- Skydance Shares Drop Amid Trading of 470 Million Warrants