Overview
- Shares fell about 7.7%–8% on Tuesday to roughly $10.30, marking six declines in seven sessions and erasing the Feb. 27 post-deal rally.
- Bank of America’s Jessica Reif Ehrlich kept an Underperform rating and lowered the price target to $11; Paramount Skydance declined to comment.
- Fitch downgraded the company’s credit to junk status and S&P placed it on negative watch, underscoring rising balance-sheet risk.
- Management projects net debt to EBITDA of about 4.3 at close of the Warner Bros. Discovery deal, targeting roughly 3.0 within three years.
- Investor worry centers on integrating WBD soon after the Paramount–Skydance merger, stepped-up content spending such as South Park and UFC, potential NFL rights costs, and political scrutiny of Middle Eastern sovereign wealth financing.