# Skydance Trades at a Fraction of Netflix's Valuation

> Skydance trades at 1/8 Netflix's valuation despite massive debt and shrinking cable networks.
- Title: Skydance Trades at a Fraction of Netflix's Valuation
- Summary: Skydance trades at 1/8 Netflix's valuation despite massive debt and shrinking cable networks. Skydance's discount from Netflix is earned due to high debt and…
- Keywords: skydance, netflix, warner bros discovery, debt, cable networks, merger, valuation, finance, money, Trades, Fraction, Netflix's
- Source: The Motley Fool — https://fool.com/investing/2026/10/21/skydance-trades-at-a-fraction-of-netflix-valuation
- Author: Anders Bylund
- Published: 2026-10-21T18:37:00+00:00
- Read time: 1 min
- Topics: skydance, netflix, warner bros discovery, debt, cable networks, merger, valuation, finance, money
## Skydance merger completion
Skydance finally swallowed Warner Bros. Discovery on Oct. 6.
## Market reaction
Shares closed at $9.07 on Oct. 13 and trade at $7.06 today, down 22.2% over the past week.
## Skydance valuation
At roughly 5 billion shares, the whole empire is worth about $35.4 billion.
## Netflix valuation
Netflix sits at $291.5 billion, about 8 times larger than Skydance.
## Skydance debt
Skydance's pro forma net debt is $78.9 billion, more than double its market cap.
## Merger purchase price
To close the merger, Skydance raised $47 billion at $12 per share.
## Business performance
Warner Bros. Discovery's revenue fell 11.2% year over year with declining linear ad sales.
## Key takeaway

Skydance's discount from Netflix is earned due to high debt and declining cable revenue.