Skydance's backers paid $12 a share. The stock's 20-day high was $11.49.
Skydance closed its purchase of Warner Bros. Discovery on Oct. 6. Its filing shows 3.9 billion new shares went to the deal's backers at $12.00, the floor of a price formula tied to the stock's market price.
KeyVex News··6 min readFact-checked against 7 public recordsKeyVex News··6 min readFact-checked against 7 public records
SKYD$9.53▼ 2.5%Close, Oct. 6. Prices from Tiingo.The short versionTap to readTap to close
- To help pay for Warner, Skydance sold new shares at a price set by a formula: the stock's average over 20 trading days, kept between $12.00 and $16.02.
- The stock never traded at $12 in those 20 days. So the price was set at the $12.00 floor, above every trade in that stretch.
- Paying more per share means fewer new shares. Still, 3.9 billion were sold, about 3.6 times the Class B stock that existed before, by KeyVex's math.
- Everyone except the Ellison and RedBird interests, some company subsidiaries and two benefit plans now holds about 9% of the Class B stock, by KeyVex's math. Class B shares carry no vote.
- Around Oct. 13, Skydance expects to give each of their shares a 10-year warrant: a right to buy one more share at $12.00.
The deal: Skydance, called Paramount Skydance until Oct. 6, completed its purchase of Warner Bros. Discovery on Oct. 6, both companies said in filings that day.8-KWBD 8-K Warner's shareholders got cash, about $78 billion in all.WBD 8-K The company now trades on the New York Stock Exchange as SKYD.8-K
The price: Much of the money came from about 3.9 billion new shares that Skydance sold at $12.00 each, about $47 billion, to a group led by the Ellison family and RedBird Capital Partners.8-KRelease The $12.00 came from a formula: the stock's average price over 20 trading days, kept between $12.00 and $16.02.Pro forma The stock never traded at $12 in those days, KeyVex's price data show.KeyVex prices The filing says the price came out at the $12.00 floor.Pro forma On Oct. 6, its first day as Skydance, it closed at $9.53, down 2.5%.Chart data
Why it matters: Paying above the market meant fewer new shares. Even at $11.49, the highest price of the 20 days, the same $47 billion would have bought about 4.1 billion, by KeyVex's math.Chart data Still, the new shares are about 3.6 times the Class B stock that existed before, by KeyVex's math.424B58-K That leaves everyone except the Ellison and RedBird interests, some company subsidiaries and two benefit plans with about 9% of the Class B stock, which does not vote, by the same math.424B5Pro forma
Skydance's stock and the deal's key datesDaily close, Feb. 2 to Oct. 6, 2026 ▼ 14.8%Show chartHide chart
- 1Feb. 27, 2026 The Warner Bros. Discovery merger agreement is signed. $31 a share in cash for Warner's stock. Paramount Skydance closes at $13.51.
- 2March 4, 2026 The last close at $12 or more. $12.05. The stock has not closed at $12 or higher since.
- 3Sept. 3, 2026 The 20 pricing days begin. The new shares' price is the average of the next 20 trading days, kept between $12.00 and $16.02. Close: $11.04.
- 4Sept. 21, 2026 The highest trade in the pricing window. $11.49, during the day. The stock closes at $9.91.
- 5Oct. 1, 2026 The 20 pricing days end. Close: $9.34. The price lands on the $12.00 floor.
- 6Oct. 6, 2026 The deal closes; the stock trades as SKYD. 3.9 billion new shares issued at $12.00. The stock closes at $9.53.
View the data (171 trading days)
| Date | Close | Day change |
|---|---|---|
| 2026-10-06 | $9.53 | −2.5% |
| 2026-10-05 | $9.78 | +2.9% |
| 2026-10-02 | $9.50 | +1.7% |
| 2026-10-01 | $9.34 | −9.6% |
| 2026-09-30 | $10.33 | +3.4% |
| 2026-09-29 | $9.99 | −2.8% |
| 2026-09-28 | $10.28 | +3.2% |
| 2026-09-25 | $9.96 | −2.2% |
| 2026-09-24 | $10.18 | +2.2% |
| 2026-09-23 | $9.96 | −1.5% |
| 2026-09-22 | $10.11 | +2.0% |
| 2026-09-21 | $9.91 | −2.9% |
| 2026-09-18 | $10.21 | −3.9% |
| 2026-09-17 | $10.62 | −4.6% |
| 2026-09-16 | $11.13 | +1.1% |
| 2026-09-15 | $11.01 | +1.3% |
| 2026-09-14 | $10.87 | +2.5% |
| 2026-09-11 | $10.60 | +2.1% |
| 2026-09-10 | $10.38 | +1.6% |
| 2026-09-09 | $10.22 | −5.4% |
| 2026-09-08 | $10.80 | −0.6% |
| 2026-09-04 | $10.86 | −1.6% |
| 2026-09-03 | $11.04 | +0.6% |
| 2026-09-02 | $10.97 | +4.0% |
| 2026-09-01 | $10.55 | −3.3% |
| 2026-08-31 | $10.91 | +0.3% |
| 2026-08-28 | $10.88 | +0.7% |
| 2026-08-27 | $10.80 | +0.6% |
| 2026-08-26 | $10.74 | +0.7% |
| 2026-08-25 | $10.67 | +3.1% |
| 2026-08-24 | $10.35 | 0.0% |
| 2026-08-21 | $10.35 | +0.6% |
| 2026-08-20 | $10.29 | −2.9% |
| 2026-08-19 | $10.60 | +1.6% |
| 2026-08-18 | $10.43 | +1.5% |
| 2026-08-17 | $10.28 | +1.4% |
| 2026-08-14 | $10.14 | +1.7% |
| 2026-08-13 | $9.97 | +4.9% |
| 2026-08-12 | $9.50 | +1.3% |
| 2026-08-11 | $9.38 | +1.2% |
| 2026-08-10 | $9.27 | +0.9% |
| 2026-08-07 | $9.19 | +1.4% |
| 2026-08-06 | $9.06 | +3.4% |
| 2026-08-05 | $8.76 | +4.5% |
| 2026-08-04 | $8.38 | +1.9% |
| 2026-08-03 | $8.22 | +3.3% |
| 2026-07-31 | $7.96 | +1.9% |
| 2026-07-30 | $7.81 | −1.8% |
| 2026-07-29 | $7.95 | −1.5% |
| 2026-07-28 | $8.07 | +0.5% |
| 2026-07-27 | $8.03 | −2.2% |
| 2026-07-24 | $8.21 | −3.3% |
| 2026-07-23 | $8.49 | −3.3% |
| 2026-07-22 | $8.78 | +2.9% |
| 2026-07-21 | $8.53 | −0.5% |
| 2026-07-20 | $8.57 | −2.1% |
| 2026-07-17 | $8.75 | −4.3% |
| 2026-07-16 | $9.14 | −1.2% |
| 2026-07-15 | $9.25 | +1.4% |
| 2026-07-14 | $9.12 | −4.5% |
| 2026-07-13 | $9.55 | +1.5% |
| 2026-07-10 | $9.41 | +0.9% |
| 2026-07-09 | $9.33 | −4.3% |
| 2026-07-08 | $9.75 | −1.9% |
| 2026-07-07 | $9.94 | −1.5% |
| 2026-07-06 | $10.09 | −2.9% |
| 2026-07-02 | $10.39 | +2.2% |
| 2026-07-01 | $10.17 | +3.1% |
| 2026-06-30 | $9.86 | +0.4% |
| 2026-06-29 | $9.82 | +1.9% |
| 2026-06-26 | $9.64 | +2.2% |
| 2026-06-25 | $9.43 | −3.3% |
| 2026-06-24 | $9.75 | +0.4% |
| 2026-06-23 | $9.71 | −1.8% |
| 2026-06-22 | $9.89 | −0.5% |
| 2026-06-18 | $9.94 | −0.4% |
| 2026-06-17 | $9.98 | −3.1% |
| 2026-06-16 | $10.30 | −1.8% |
| 2026-06-15 | $10.49 | +0.2% |
| 2026-06-12 | $10.47 | −0.2% |
| 2026-06-11 | $10.49 | +1.7% |
| 2026-06-10 | $10.31 | +0.7% |
| 2026-06-09 | $10.24 | −1.4% |
| 2026-06-08 | $10.39 | +1.7% |
| 2026-06-05 | $10.22 | −4.3% |
| 2026-06-04 | $10.68 | +2.2% |
| 2026-06-03 | $10.45 | −3.1% |
| 2026-06-02 | $10.78 | −1.8% |
| 2026-06-01 | $10.98 | +3.5% |
| 2026-05-29 | $10.61 | −1.9% |
| 2026-05-28 | $10.81 | +1.8% |
| 2026-05-27 | $10.62 | +2.4% |
| 2026-05-26 | $10.37 | −0.9% |
| 2026-05-22 | $10.46 | +1.8% |
| 2026-05-21 | $10.28 | +1.5% |
| 2026-05-20 | $10.13 | +2.3% |
| 2026-05-19 | $9.90 | +0.8% |
| 2026-05-18 | $9.82 | −0.7% |
| 2026-05-15 | $9.89 | −2.2% |
| 2026-05-14 | $10.11 | −3.4% |
| 2026-05-13 | $10.47 | −2.1% |
| 2026-05-12 | $10.69 | −1.9% |
| 2026-05-11 | $10.90 | −1.7% |
| 2026-05-08 | $11.09 | +3.1% |
| 2026-05-07 | $10.76 | −1.4% |
| 2026-05-06 | $10.91 | +2.3% |
| 2026-05-05 | $10.66 | −4.2% |
| 2026-05-04 | $11.13 | +0.4% |
| 2026-05-01 | $11.09 | +8.3% |
| 2026-04-30 | $10.24 | −1.0% |
| 2026-04-29 | $10.34 | −1.7% |
| 2026-04-28 | $10.52 | −0.7% |
| 2026-04-27 | $10.59 | −3.5% |
| 2026-04-24 | $10.97 | −2.7% |
| 2026-04-23 | $11.27 | −4.5% |
| 2026-04-22 | $11.80 | +1.6% |
| 2026-04-21 | $11.61 | −1.8% |
| 2026-04-20 | $11.82 | +0.7% |
| 2026-04-17 | $11.74 | +0.1% |
| 2026-04-16 | $11.73 | +0.5% |
| 2026-04-15 | $11.67 | +5.3% |
| 2026-04-14 | $11.08 | +3.3% |
| 2026-04-13 | $10.73 | +1.0% |
| 2026-04-10 | $10.62 | −2.1% |
| 2026-04-09 | $10.85 | +0.3% |
| 2026-04-08 | $10.82 | −0.7% |
| 2026-04-07 | $10.90 | +10.7% |
| 2026-04-06 | $9.85 | +3.5% |
| 2026-04-02 | $9.52 | +2.9% |
| 2026-04-01 | $9.25 | +2.5% |
| 2026-03-31 | $9.02 | +1.1% |
| 2026-03-30 | $8.92 | +1.5% |
| 2026-03-27 | $8.79 | −1.0% |
| 2026-03-26 | $8.88 | −3.8% |
| 2026-03-25 | $9.23 | +0.7% |
| 2026-03-24 | $9.17 | +0.3% |
| 2026-03-23 | $9.14 | −0.1% |
| 2026-03-20 | $9.15 | +2.1% |
| 2026-03-19 | $8.96 | −0.4% |
| 2026-03-18 | $9.00 | −2.5% |
| 2026-03-17 | $9.23 | −2.8% |
| 2026-03-16 | $9.50 | −2.3% |
| 2026-03-13 | $9.72 | −0.8% |
| 2026-03-12 | $9.80 | −1.4% |
| 2026-03-11 | $9.94 | −3.8% |
| 2026-03-10 | $10.33 | −7.7% |
| 2026-03-09 | $11.19 | −6.7% |
| 2026-03-06 | $11.99 | +2.1% |
| 2026-03-05 | $11.74 | −2.6% |
| 2026-03-04 | $12.05 | −3.2% |
| 2026-03-03 | $12.45 | −6.7% |
| 2026-03-02 | $13.34 | −1.3% |
| 2026-02-27 | $13.51 | +20.8% |
| 2026-02-26 | $11.18 | +10.0% |
| 2026-02-25 | $10.16 | −2.2% |
| 2026-02-24 | $10.39 | −1.6% |
| 2026-02-23 | $10.56 | −1.4% |
| 2026-02-20 | $10.71 | −2.1% |
| 2026-02-19 | $10.94 | −1.6% |
| 2026-02-18 | $11.12 | +2.7% |
| 2026-02-17 | $10.83 | +4.9% |
| 2026-02-13 | $10.32 | +0.7% |
| 2026-02-12 | $10.25 | −6.9% |
| 2026-02-11 | $11.01 | +1.6% |
| 2026-02-10 | $10.84 | +1.5% |
| 2026-02-09 | $10.68 | +1.1% |
| 2026-02-06 | $10.56 | +0.4% |
| 2026-02-05 | $10.52 | −2.1% |
| 2026-02-04 | $10.75 | −0.6% |
| 2026-02-03 | $10.81 | −3.3% |
| 2026-02-02 | $11.18 |
The stock last closed at $12 or more on March 4. Source: Tiingo end-of-day closes, as traded, via KeyVex.
How the $12 was set
When Paramount Skydance agreed on Feb. 27 to buy Warner, affiliates of Larry Ellison's revocable trust committed up to $46.7 billion to buy new stock. RedBird committed $250 million.8-KPro forma The share count was left open. Each would get its dollar amount divided by the stock's average daily price, weighted by trading volume, over the 20 trading days ending three business days before the closing. The $12.00 floor and $16.02 ceiling applied.Pro forma
Those 20 days ran from Sept. 3 through Oct. 1. The highest price the stock touched in them was $11.49, on Sept. 21. Its closes ran from $9.34 to about $11.14.Chart dataKeyVex prices Valued at the Oct. 6 close of $9.53, the new shares come to about $37.3 billion, about $9.7 billion below the $47 billion paid, by KeyVex's math.Chart data The filings don't say why the floor was put at $12.00.
An earlier sale was smaller. In the August 2025 Skydance-Paramount merger, investors paid $15.00 a share for 400 million shares, about $6 billion, and entities controlled by the Ellison family, with a RedBird affiliate, also got 200 million five-year warrants at $30.50.Pro forma
View the data
| Per share | Note | |
|---|---|---|
| The formula's range (20-day average, floor to ceiling) | $12.00 to $16.02 | Per Exhibit 99.2 to Skydance's Oct. 6 8-K |
| Oct. 6 close (First day as SKYD) | $9.53 | As traded |
| Highest trade (Sept. 3 to Oct. 1) | $11.49 | Sept. 21, during the day |
| August 2025 price (400 million shares) | $15.00 | Investors' price in the Skydance-Paramount merger |
The backers paid the $12.00 floor. Sources: Exhibit 99.2 to Skydance's Oct. 6 8-K; Tiingo prices, as traded, via KeyVex.
Who bought, and who owns Skydance now
The Ellison trust and RedBird passed their rights to buy to a group. It included their own affiliates, the Public Investment Fund, the LionTree Investment Fund, and vehicles of L'Imad Holding, an Abu Dhabi sovereign fund, and the Qatar Investment Authority. Together they covered the full amount.Pro forma8-K Their shares are Class B stock, which does not vote.Pro forma
Before the closing, Skydance had 1,093,020,754 Class B shares, as of Oct. 2. About 622 million of them were held by the Ellison and RedBird interests, some company subsidiaries and two benefit plans, which the warrant plan leaves out. That leaves about 471 million.424B5 The Ellison family and RedBird together hold all of the Class A stock, which carries all the votes, the company said.Release
Skydance's Class B shares after the closing, by holderShow chartHide chart
View the data
| Skydance Class B shares | Shares | Note |
|---|---|---|
| New shares sold to the backers (Issued Oct. 6 at $12.00) | 3,918 million | 3,917,657,246 shares, per the 8-K |
| Earlier shares of restricted holders (Ellison and RedBird interests, and others) | 622 million | About 622 million on Oct. 2, per the warrant prospectus; they get no warrants |
| Shares getting warrants (Everyone else) | 471 million | About 471 million on Oct. 2 (up to 471.3 million warrants registered), one warrant each |
The two earlier groups are as of Oct. 2. Sources: Skydance's Oct. 6 8-K and its Oct. 5 warrant prospectus supplement.
What the public holders get
Every Class B share outside that group gets one warrant, at no charge, to buy a share at $12.00 for 10 years, up to 471.3 million warrants in all. Skydance expects to hand them out around Oct. 13.424B5 After three years, Skydance can cut that short if the stock closes at $30.00 or more on 20 of 30 trading days.424B5 At the Oct. 6 close of $9.53, using a warrant would mean paying $12.00 for a share the market priced lower.Chart data
The debt that paid for the rest
Most of the rest was borrowed. On Oct. 5, Skydance sold $41.4 billion of dollar notes secured by its assets, paying 6.300% to 9.125%. It also sold €885 million of euro notes. On Oct. 6, it borrowed $8.5 billion and €850 million in seven-year loans.8-K Its $49 billion of bridge commitments, standby loans lined up for the deal, were cut to zero and ended.8-K Statements showing the two companies as if combined on June 30 put long-term debt at about $80.3 billion. Paramount Skydance alone reported $14.5 billion.Pro forma10-Q
S&P Global Ratings cut Paramount Skydance to BB from BB+ on Sept. 24, Investing.com reported. S&P expects leverage of about 7.6 times to start, improving to about 5.1 times in 2028, the report said.Investing.com The company says it aims to save $6 billion or more a year within three years, and to cut net leverage to 3.0 times by the end of 2029.Release
The backers agreed not to sell their new shares for 180 days after the closing, with some exceptions and unless Skydance waives it, which runs to early April 2027.8-K Skydance has agreed to use reasonable best efforts to file to register those shares, and the original investors' other Class B shares, for resale by late December, by KeyVex's count of the agreement's terms.8-K
Also in the filings
These items are separate from the share sale. David Zaslav, Warner's chief executive, left the company on Oct. 6, and three other Warner executives leave on Oct. 16, each eligible for previously disclosed separation benefits. Three Warner executives got transaction bonuses of $2.1 million to $2.9 million.WBD 8-K Warner also said it had inadvertently granted 396,804 restricted stock units after its director plan expired, and its board ratified them on Oct. 2.WBD 8-K
At Skydance, David Ellison's base salary rose to $5 million at the closing, and Andrew Brandon-Gordon became president.8-K Robert Kotick, Activision Blizzard's former chief executive, and Laurene Powell Jobs joined the board.8-K
The paper trail
The filings this story relies on, Oct. 5 and 6, 2026, with the time EDGAR accepted each one.
| Filed (ET) | Form | Filer | What it shows |
|---|---|---|---|
| Oct. 5, 9:36 a.m. | 424B5 | Paramount Skydance | Up to 471.3 million warrants at $12.00. 1,093,020,754 Class B shares outstanding on Oct. 2. |
| Oct. 6, 9:08 a.m. | 8-K | Skydance | The closing: 3,917,657,246 shares at $12.00, $41.4 billion of secured notes, new term loans, pro forma statements. |
| Oct. 6, 10:03 a.m. | 8-K | Warner Bros. Discovery | $31.01666668 a share in cash; about $78 billion in all; directors and officers leave. |
| Oct. 6, 5:14 p.m. | 8-K | Skydance | Robert Kotick and Laurene Powell Jobs join the board. |
What to watch
Skydance expects to distribute the warrants, one for each eligible Class B share.
Skydance's best-efforts deadline to file to register shares held by parties to its registration agreement for resale, by KeyVex's count.
The backers' 180-day lockup on the new shares ends.
The company's target for net leverage of 3.0 times.
Sources
10 sources, 7 of them public records
Public records
- Skydance Corp. (formerly Paramount Skydance Corp.), Form 8-K: completion of the Warner Bros. Discovery acquisition, notes, credit agreement and PIPESEC EDGAR · Oct. 6, 2026
- Skydance Corp., Form 8-K, Exhibit 99.1: "Paramount Completes Acquisition of Warner Bros. Discovery"SEC EDGAR · Oct. 6, 2026
- Skydance Corp., Form 8-K, Exhibit 99.2: unaudited pro forma condensed combined financial statementsSEC EDGAR · Oct. 6, 2026
- Skydance Corp., Form 8-K: director appointmentsSEC EDGAR · Oct. 6, 2026
- Paramount Skydance Corp., prospectus supplement (424B5): warrants to purchase Class B common stockSEC EDGAR · Oct. 5, 2026
- Paramount Skydance Corp., Form 10-Q for the quarter ended June 30, 2026SEC EDGAR · Aug. 2026
- Warner Bros. Discovery Inc., Form 8-K: completion of the mergerSEC EDGAR · Oct. 6, 2026
Reporting
- "S&P downgrades Paramount Skydance rating on higher leverage"Investing.com · Sept. 24, 2026
Data
- End-of-day prices for SKYD (PSKY until Oct. 5), and for SPY and QQQ on the chart (Tiingo)KeyVex · through Oct. 6, 2026
- The chart's Filings layer: KeyVex's Congress trade, insider trade, Form 144, 8-K and lobbying records for SKYDKeyVex · through Oct. 6, 2026
How we got these numbers
- Prices are end-of-day closes as traded, not adjusted for dividends. Daily moves are close to close. The stock traded as PSKY on Nasdaq until Oct. 5, 2026, and as SKYD on the NYSE from Oct. 6. The highest trade in the pricing window is the highest daily high from Sept. 3 through Oct. 1, 2026. The S&P 500 and Nasdaq 100 lines follow SPY and QQQ, rebased to Skydance's close at the start of the range shown. The Filings switch shows a selection of filing markers from KeyVex's Skydance stock page, not every filing, and not only those tied to this story.
- The $47 billion is 3,917,657,246 shares times $12.00 ($47,011,886,952). Their value at the Oct. 6 close is the same shares times $9.53 ($37,335,273,554); the difference is about $9.68 billion. At $11.49, $47,011,886,952 buys about 4.09 billion shares.
- The shares outside the excluded group come to about 471 million (1,093,020,754 outstanding on Oct. 2 less about 622 million excluded; the 424B5 registers up to 471.3 million warrants), out of 5,010,678,000 Class B shares after the closing (the Oct. 2 count plus the 3,917,657,246 new shares), or 9.4%. It leaves out any Class B shares issued or retired between Oct. 2 and the closing, and the 31.5 million Class A shares (as of July 31). The new shares are 3.58 times the Oct. 2 count.