Skydance Shares Drop 8.7% as Warner Deal Leaves $87 Billion in Debt

Skydance Corporation (SKYD) shares fell 8.7% to $7.94 Tuesday, Nov. 10, erasing the previous session’s 8.6% gain, as earnings highlighted the debt load following its Warner Bros. Discovery acquisition.

Adjusted earnings were 45 cents per share. Revenue rose 5% from a year earlier to $7.03 billion, just below the $7.04 billion estimate. The quarter ended Sept. 30, before the acquisition closed Oct. 6, so the results did not include Warner Bros. Discovery.

After the deal, Skydance had $87 billion in gross debt and about $10 billion in cash. The company warned that Warner Bros.’ fourth-quarter film slate could reduce fourth-quarter profit by up to $200 million compared with earlier expectations.

Skydance is targeting more than $6 billion in yearly savings within three years and aims for $10 billion in positive cash flow by 2030. Those targets and the debt burden echo J.P. Morgan’s earlier assessment of Skydance’s leverage risks.

Skydance expects cash outflows to exceed inflows in 2026. It did not provide full fourth-quarter guidance and said it would issue full-year outlooks going forward.