{
  "id": 15931128,
  "title": "Skydance Trades at a Fraction of Netflix's Valuation. Is the Discount Deserved?",
  "url": "https://urgent.news/2026/10/21/skydance-trades-at-a-fraction-of-netflixs-valuation-is-the-discount",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-21T18:37:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/21/skydance-trades-at-a-fraction-of-netflix-valuation/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Warner Bros. Discovery merged with Skydance on Oct. 6, creating a massive media conglomerate. However, the combined company's shares have dropped 22.2% over the past week, trading at $7.06. For comparison, Netflix's valuation is over eight times larger, at $291.5 billion. Skydance's debt is over double its market cap, and management aims to reduce leverage to 3.75 times EBITDA by 2028, but it's currently near 6 times. To reach this target, they'll need $6 billion in promised synergies. Skydance raised $47 billion in fresh equity for the merger, but the stock is now 41.2% below the purchase price. Warner Bros. Discovery's revenue fell 11.2% year-over-year, and its studio profits declined 89%. Netflix generated $3.4 billion on $12.6 billion in revenue, compared to Skydance's $190 million on $15.6 billion. Netflix's cash flow is expected to be around $12.5 billion this year, while Skydance aims for $10 billion or more by 2030. Netflix trades at 18.5 times forward earnings and has a lower net debt of $5.2 billion, while Skydance's operating margin is below 5%. Given these factors, Skydance appears to be the cheaper option, but it's burdened by significant debt and shrinking cable networks.",
  "summary": "Skydance stock looks cheap next to Netflix. That discount comes with $78.9 billion of net debt attached.",
  "key_points": [
    "Skydance shares down 22.2% after Warner Bros. Discovery merger",
    "Netflix valuation 8x larger than Skydance at $291.5B",
    "Skydance aims to reduce leverage to 3.75x EBITDA by 2028"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}