Skydance shares fall on second day after Paramount-WBD deal closes

Skydance had a rough second day on Wall Street.

Shares in the new company closed on Wednesday, 7 October 2026, down 6.8% at $8.98, according to Deadline. It was the second consecutive down session since the stock began trading in New York.

The slide followed a soft start. Skydance Class B shares ended regular trading on Tuesday at $9.51, down 2.7%, Variety reported. They fell as much as 6% during that first session.

The falls came as the combination of Paramount and Warner Bros. Discovery closed, Deadline reported. Paramount said on 6 October 2026 that it had completed its acquisition of Warner Bros. Discovery, creating a new global entertainment leader called Skydance, according to a company statement. Class B shares in Skydance began trading on the New York Stock Exchange under the ticker SKYD, a short code used to identify the stock, the company said.

Leadership of the combined organisation is now set. David Ellison is chairman and chief executive of Skydance and Ynon Kreiz is co-chief executive, Deadline reported. Skydance also added Kreiz, Laurene Powell Jobs and Bobby Kotick as directors, with Tony Blair as an adviser, according to a company announcement.

Investors are focused on the balance sheet. Skydance carries $80 billion in debt, Deadline reported. Management has promised $6 billion in cost synergies, planned savings from joining the two businesses, with $3 billion in 2027 and $3 billion in 2028.

Ellison and Kreiz reiterated a commitment to reduce leverage dramatically by 2028, Deadline reported. Leverage here means reliance on borrowed money. Skydance also reached a legal settlement with attorneys general who tried to block the merger.

Early Wall Street reaction is mixed. Citizens analyst Matthew Condon has a ‘market overperform’ rating on Skydance shares with a $14 price target, Deadline reported. TD Cowen analyst Doug Creutz has a ‘hold’ recommendation, advice to neither buy nor sell for now.

For viewers, the deal puts Paramount and Warner Bros. Discovery under one roof. For shareholders, the question is debt, savings and speed.