Skydance stock struggled out of the gate this week, closing its first day of trading on the New York Stock Exchange at $9.51 after falling 2.7%. The decline came a day after Paramount Skydance completed its $110 billion acquisition of Warner Bros. Discovery on Oct. 6, forming the new entertainment company that now trades under the ticker SKYD.
The rocky debut reflects investor concern over the debt Skydance took on to close the deal, according to Deadline. The outlet reported that Skydance shares have fallen 15% since the merger was first proposed in February 2026, a sign that market skepticism predates this week’s trading floor debut.
Skydance Stock Debut And The Debt Behind It
The merger left Skydance carrying $80 billion in debt, pushing its leverage ratio to nearly seven times EBITDA, Deadline reported. That load prompted credit rating agency Fitch to cut Skydance’s credit rating on Tuesday, citing the heavy debt burden along with structural pressure on linear TV revenue, competition in streaming and the inherent risk of a content business built on hits.
The leverage ratio approaching seven times EBITDA has made some investors nervous, according to Deadline. Management had not yet made a full pitch to Wall Street to lay out its turnaround case following the deal’s completion.
What The Merger Means For Fans And Customers
The combined company brings together major film studios, the streaming services Paramount+ and HBO Max, and news networks CBS and CNN under one roof. For now, those platforms and networks continue operating as announced, with the business changes playing out at the corporate and financial level rather than in subscriber-facing products.
Skydance is projected to generate nearly $70 billion in annual revenue as a combined entity. The company has set a target of cutting its net debt to adjusted EBITDA ratio from an estimated 7x in 2026-2027 down to 3.0x by the end of 2029, with more than $6 billion in annualized run-rate synergies targeted over the next three years.
Analysts at MoffettNathanson forecast Skydance’s EBITDA to reach $16 billion in 2028 and climb to $19 billion by 2030, according to Reuters. The same analysts projected revenue of about $67 billion in 2028, growing to roughly $70 billion in 2030, giving investors a longer-term benchmark against the company’s current stock struggles.
Context On The Deal’s Closing
Warner Bros. Discovery shareholders received $31.01666668 per share in cash plus an additional $41.9 million in ticking fees as part of the deal. RedBird Capital founder and Skydance board member Gerry Cardinale invested $4 billion into the company as part of the transaction.
David Ellison serves as Skydance’s CEO, with Ynon Kreiz as co-CEO. In a statement, Ellison called the merger’s close a milestone for the industry. “Today is a historic day, not just for Skydance but for our entire industry.”
What’s Next For Skydance
Skydance has not yet set a date for management to deliver a full presentation to Wall Street following the merger’s close, according to Deadline. Analysts are adjusting their estimates for the new company as they pour over SEC filings, giving investors a clearer picture of how the deal economics will play out in the years ahead.
Don't stop here
Every Score. Every Story. One Home.
Breaking sports, entertainment and news from across the Total Apex network, updated all day.
Get the Full Story →
