Paramount Skydance (PSKY) Nosedives 16.5% on Netflix-Warner Bros Merger

We recently published December Disappointments: 10 Big Names Troubled Early. Paramount Skydance Corp. (NASDAQ:PSKY) is one of the worst performers of last week. Paramount saw its share prices fall by 16.5 percent week-on-week as investors unloaded portfolios after losing to Netflix in a billion-dollar bidding war to acquire Warner Bros Discovery Inc. A report by The Post last week said that Paramount Skydance Corp.’s (NASDAQ:PSKY) chief, David Ellison, sat down with officials from the White House on Wednesday to lobby against WBD’s merger agreement with Netflix, arguing that even at a higher offer, the latter’s bid must be discounted due to the uncertainty it could bring. Photo by Petter Lagson on Unsplash Prior to the meeting, Paramount Skydance Corp. (NASDAQ:PSKY) warned multiple times that Netflix’s acquisition would pose unacceptable risks to WBD shareholders. On Friday, Netflix announced that it officially shook hands with WBD for the acquisition of the latter’s shares at $27.75 apiece, putting the equity value at $72 billion with a total enterprise value of $82.7 billion. The acquisition would include WBD’s film studio and streaming service, HBO Max, while the latter would push forward with its previously announced spinoff of Discovery Global, which owns and operates TNT and CNN. The transaction is expected to close after the successful separation of Discovery Global into a new publicly-traded company, which is now expected to be completed in the third quarter of 2026. While we acknowledge the potential of PSKY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.