Skydance Shares Fall 25% After Warrant Distribution

Skydance shares fell about 25% in trading on October 14 after the company distributed roughly 471 million warrants to eligible Paramount Skydance Class B shareholders, separating the warrants from the common stock. Each warrant initially gives its holder the option to buy one Skydance share for $12. The stock was trading at $6.78 in reports published during the day, down 25.4% from its previous close of about $9.07. An earlier trading report recorded an intraday low of $7.60. These are observations from different times, not simultaneous prices. The distribution means eligible shareholders who retained both securities now hold a share and a separately priced warrant. The sharp decline in the share price therefore does not, by itself, show the change in value of their combined holdings. One analysis using morning prices put a share and warrant together at about $9.20. Investors buying shares after the separation do not receive the distributed warrants. The New York Stock Exchange adjusted Skydance Class B’s official closing price by $0.19368 per share in connection with the distribution, from approximately $9.27 to $9.07.