Paramount Skydance Stock Is Trading Higher Friday: What's Going On?

Paramount Skydance PSKY shares are trading higher Friday after a report suggesting that the company is preparing an Ellison-backed bid for Warner Bros. Discovery, Inc. WBD.What To Know: According to the Wall Street Journal, Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery with the Ellison family backing the deal. The bid would include its cable networks and movie studio.Warner Bros. Discovery said late last year it planned to restructure into two operating divisions, one focused on legacy cable-television and the other on streaming and studios. Warner Bros. Discovery had a market capitalization of nearly $33 billion early Thursday, more than double that of Paramount Skydance. The companies have not submitted a formal bid, and the plans could still fall through.What Else: In August, Paramount merged Skydance Media and laid out plans. The bid for Warner Bros. Discovery could help Paramount Skydance CEO David Ellison achieve his previously reported goal of “restoring Paramount as the No. 1 studio for filmmakers and talent in the world.”How To Buy Paramount Skydance StockBy now you're likely curious about how to participate in the market for Paramount Skydance – be it to purchase shares, or even attempt to bet against the company.Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.PSKY Price Action: At the time of writing, Paramount Skydance shares are trading 6.76% higher at $18.64, according to data from Benzinga Pro.Image: