PomegraParamount Skydance Stock Sinks 26% YTD as $620M Merger Fee Starts
Why is Paramount Skydance stock down?
Paramount Skydance (PSKY) stock is down 26% in 2026 to $10.06 as a court stall on the $110.9B WBD merger means a $620M quarterly fee starts Wednesday.
Key numbers
| WBD deal price | $31.00/share cash+147% vs pre-deal $12.54 |
|---|---|
| Total deal size | $110.9B enterprise value~$81B equity value |
| Ticking fee — quarterly | $0.25/WBD share per quarter~$620M total per quarter (per [3][4]) |
| Ticking fee — daily | ~$7M/day from Sept. 30$0.00277778/WBD share/day |
| Max total fee exposure | ~$1.86B3 full quarters to June 2027 deadline |
| PSKY YTD return | -26% to $10.0652-week high $20.09 |
What happened
Paramount Skydance (PSKY) stock is down 26% in 2026 to $10.06 as a court stall on the $110.9B WBD merger means a $620M quarterly fee starts Wednesday. Paramount's $31-a-share all-cash bid for Warner Bros. Discovery — announced in February at a 147% premium to WBD's pre-deal price of $12.54 — drew an antitrust lawsuit from California and 11 other states in July. A settlement with all 12 state attorneys general was announced September 21, but the presiding judge has not signed off and asked both sides on September 25 to address fresh legal concerns by September 28, leaving the deal legally blocked. From September 30, Paramount owes WBD shareholders roughly $7 million every day the deal remains unsigned — totaling up to $1.86 billion if the merger closes as late as June 2027.
Why it matters
The Paramount Skydance ticking fee is not a penalty — it is money flowing directly from Paramount's balance sheet to WBD shareholders every day the court has not cleared the deal. Paramount is already committed to $54 billion in new debt to fund the acquisition, so the $7 million daily fee makes an already stretched position tighter. For PSKY investors, every day the judge delays adds to a cost that will hit the company's books before the merger even closes.
Who this affects
- MarketbearishMedium impact
- PSKY shareholders face growing daily costs while deal stalls.
- CompanybearishHigh impact
- Paramount's stretched balance sheet now absorbs $7M in daily fees.
- CompetitorsneutralLow impact
- Netflix and Disney benefit as the Paramount-WBD deal stalls.
- IndustrybearishMedium impact
- Hollywood's largest-ever merger stalls, prolonging sector uncertainty.
Paramount Skydance vs Warner Bros. Discovery, Netflix, Disney
| Paramount SkydancePSKY:NASDAQ | $11.2B | +1.0% | -26% | 11.9x |
|---|---|---|---|---|
| Warner Bros. DiscoveryWBD:NASDAQ | $77.5B | +0.1% | — | 167x |
| NetflixNFLX:NASDAQ | $296.2B | -0.8% | -21% | 20.6x |
| Walt DisneyDIS:NYSE | $183.3B | +0.6% | — | 14.1x |
As of 2026-09-25
How we got here
Paramount launches $31/share bid; $110.9B deal formally announced
DOJ clears deal; EU approval follows; Q3 2026 close expected
California + 11 states sue to block deal; court issues TRO
Settlement reached with 12 state AGs; consent decree filed
$620M quarterly ticking fee begins accruing if deal not closed
What to watch
- Judge's ruling on Sept. 21 consent decree; responses due Sept. 28 noon2026-09-28
- Ticking fee trigger: $7M daily clock starts if merger still blocked2026-09-30
- Hard outer deadline: deal must close or lapse by late June 20272027-06-30
Educational content only. Not investment advice.
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