Why Is Paramount Skydance Stock Down Today?

Shares of Paramount Skydance Corporation (NASDAQ:PSKY) are trading lower after the company was beat out by streaming service Netflix in a bidding war for Warner Bros. Discovery.

Paramount Skydance shares are retreating from recent levels. Why is PSKY stock dropping?

What To Know: Paramount lost its all-cash bid for Warner Bros. Discovery to Netflix’s offer of $82.7 billion in stock and cash with a stock price of $27.75. Paramount bid $30 a share, according to CNBC. The outlet reported that Paramount’s legal team has also accused Warner Brothers of not properly considering the company’s offer and that the sale to Netflix was predetermined.

A merger between Netflix and HBO, which is Warner Brother’s streaming service, could cut costs for consumers if the two services were to be bundled, resulting in lower revenue for Netflix. Some reports also claim that Netflix would not gain subscribers after the merger since there’s overlap between the two services and because the product may be offered at a discount.

Another key aspect of the deal is that Paramount was bidding for all of Warner Brother’s assets: the film studio, streaming service and TV networks. Netflix and Comcast were just interested in Warner Bros. and HBO Max. The TV networks under Warner Brothers include CNN and TNT Sports.

PSKY Price Action: Shares were down 7.76% and trading at $13.67 at the time of publication, according to Benzinga Pro.

Read More:

• Netflix To Acquire Warner Bros. Discovery: What It Means For AMC

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