After Clearing a Major Hurdle to Acquire Warner Bros, Is Paramount Skydance an Obvious Buy Down 25.7%?
The Paramount-WBD merger finally looks set to close. Is it a buying opportunity?
Overview
2026 has been a wild year for Paramount Skydance (NASDAQ: PSKY). After closing its merger with Skydance last August, Paramount, under new CEO David Ellison, aggressively pursued Warner Bros. Discovery (Nasdaq: WBD) and, in the end, outbid Netflix for the Hollywood conglomerate.
The merger between two of Hollywood's biggest studios was met with outcries from industry creators and regulatory pushback. However, after Paramount agreed to a settlement with several state attorneys general who had sued to block the merger, the deal now looks set to go through, pending a last-minute intervention by a judge on Thursday.
Details
Investors aren't cheering, though. The stock is down 26% year-to-date, and it actually fell earlier this week on news of the settlement, showing investors are skeptical that it's the right move for the company, as the deal imposes significant requirements, including a minimum number of theatrical releases, a minimum commitment of domestic production spending, and that the company must keep both the Paramount and WBD Hollywood studio lots open.
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Originally published at www.fool.com.