Communications Services Surge on Deal Activity

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The communications services sector saw a rise in activity as major companies like Paramount Skydance and Madison Square Garden Sports announced potential deals and spinoffs. Paramount Skydance shares gained on hopes it could win over Warner Bros Discovery shareholders with a bid, while MSG Sports said it would explore separating its Knicks and Rangers franchises into two publicly traded companies.

Why it matters

The communications and media industries have seen significant consolidation and deal-making in recent years as companies seek to gain scale and expand their content and distribution capabilities. These latest announcements reflect the continued high value placed on premium sports and entertainment assets.

The details

Paramount Skydance, the entertainment company formed by the merger of Paramount Pictures and Skydance Media, saw its shares rise as investors speculated it could win over Warner Bros Discovery shareholders with a takeover bid. Meanwhile, Madison Square Garden Sports, which owns the New York Knicks and New York Rangers, said it would explore a potential spinoff to separate its sports franchises into two publicly traded companies.

• On February 18, 2026, communications services stocks rose amid the deal activity.