Paramount Skydance sets $12 strike on 471 million warrants for public Class B holders ahead of WBD close

Paramount Skydance has put a price on the warrants it plans to hand to its public shareholders. In a prospectus supplement filed Monday, the company said it will distribute up to 471.3 million warrants, each giving the right to buy one Class B share at $12.00, to eligible holders of record as of Oct. 5, 2026.

The warrants are expected to be issued on or about Oct. 13 and to trade on the New York Stock Exchange under the ticker SKYDW. They run for 10 years, to about Oct. 13, 2036, and are transferable, so holders can exercise, sell or simply hold them.

The payout is tied to the company's pending acquisition of Warner Bros. Discovery. Paramount Skydance said the warrant distribution is contingent on that deal closing, which it now expects on or about Oct. 6, though the acquisition remains subject to further closing conditions. The company said it may cancel or postpone the record date or issue date.

Not every share gets a warrant. Of the 1,093,020,754 Class B shares outstanding as of Oct. 2, about 622 million are held by or for Lawrence J. Ellison, David F. Ellison, Gerald J. Cardinale, an Ellison trust, RedBird Capital Partners Fund IV and their affiliates, or by a Paramount Global 401(k) plan and master trust, and are excluded. The plan and trust will instead receive a number of shares to be determined after the distribution.

If every warrant were exercised for cash, Paramount Skydance said it would collect roughly $5.7 billion after estimated commissions and expenses, for general corporate purposes. Warrants settled on a net-share basis bring in no cash. Starting after the third anniversary, the company can set an earlier expiration date if the stock closes at or above $30.00 on at least 20 of 30 consecutive trading days.

The warrants arrive alongside a listing overhaul. A separate Form 8-A filed Monday said Nasdaq trading in the Class B shares is expected to end at the close on or about Oct. 5, with NYSE trading beginning on or about Oct. 6. The prospectus says the company intends to change the ticker from PSKY to SKYD and rename itself Skydance Corporation, effective around Oct. 6.

The Class B shares last sold at $9.50 on Oct. 2, according to the filing, and were up about 1.7% at $9.66 in midday trading Monday.

By the numbers

• Warrants to be distributed: up to 471,300,000
• Exercise price: $12.00 per Class B share
• Term: 10 years (to about Oct. 13, 2036)
• Early-expiration trigger: $30.00, after year three
• Proceeds if fully exercised for cash: about $5.7 billion
• Expected NYSE tickers: SKYD (shares), SKYDW (warrants)

Sources

1. Paramount Skydance Corporation prospectus supplement (Form 424B5), filed Oct. 5, 2026, accession 0001104659-26-113573
2. Paramount Skydance Corporation Form 8-A12B (Class B listing transfer to NYSE), filed Oct. 5, 2026, accession 0001104659-26-113569

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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