Shares of Skydance Corp., formed through the merger of Paramount and Warner Bros. Discovery, fell as much as 27% in trading Wednesday. The drop came as the Skydance, led by chairman and CEO David Ellison, distributed about 471 million warrants giving holders of Paramount Skydance’s PSKY Class B shares the option to purchase stock in the new company.
\n\nSkydance’s stock — which began trading Oct. 6 on the New York Stock Exchange under the symbol “SKYD” — closed down 22.2%, to $7.06/share, as of the end of regular trading Wednesday.
\n\nEach warrant issued to PSKY holders initially allows them to buy one share of Skydance for $12. (The warrants, trading on NYSE under “SKYD WS,” had an Oct. 13 closing price of $2.20 apiece. PSKY stock was delisted from the Nasdaq on Oct. 5.) If all of those warrants were exercised, that would raise about $5.65 billion for the company, while it would also increase the share count and dilute ownership of current shareholders. It’s not known how many warrants have been exercised so far.
\n\nIn connection with Skydance’s distribution of stock warrants to PSKY holders, the NYSE announced after market close Tuesday that it would adjust the official closing…
Original source: https://variety.com/