Stock Market Today, Oct. 14: Skydance Warrants Begin Separate Trading Today: SKYD Stock Drops 24%

Skydance (SKYD) plunged 24% on October 14, 2026, as 471 million warrants began trading separately from the company's shares on the ex-distribution date.

The warrants went to former Paramount shareholders and carry a $12 strike price, exercisable through 2036. Full exercise would raise $5.7 billion for the company but dilute existing shares by roughly 10%.

The selloff lands on a balance sheet that offers little cushion. The combined company carries approximately $80 billion in net debt against $11.2 billion in adjusted EBITDA. That works out to roughly 7.1x net debt to adjusted EBITDA, which is our calculation from the supplied figures and not a company-reported metric.

Interpretation: the 24% drop likely reflects the market pricing in the dilution overhang and the new, freely tradable warrant supply at once. With the warrants now trading on their own, holders can sell or hedge them independently, which may keep pressure on SKYD in the near term. Leverage of this size also means any shortfall in EBITDA would hit equity value hard.