S&P 500 may get a new member soon! Which company do you think would make it into the index?

Paramount Global (PARA) could be on the chopping block if the S&P 500’s managers decide its impending merger with Skydance Media makes it too small for the benchmark large-cap index. Paramount’s current market capitalization of about $8 billion is one of the lowest in the index, and well below the $22 billion S&P Global requires of new entrants.

S&P considers a company’s float-adjusted market cap and liquidity when determining eligibility, and the Skydance merger could impact both for Paramount. The merger is set to close on Thursday (August 7, 2025), after which the new company will trade under the symbol “PSKY”.

But there won’t be much “PSKY” to trade; per the terms of the agreement, Skydance will own roughly 70% of Paramount’s outstanding shares. That could shrink its float-adjusted value to about $3 billion, an amount S&P Global might consider inappropriate for the index, or too small to ensure adequate liquidity.

Paramount’s merger could be the opportunity investors in Applovin (APP) and Robinhood (HOOD) hoped would come earlier this year. Both were considered top candidates to replace Hess (HESS) in the index when it was acquired by Chevron (CVX) earlier this month. The retail investor favorites easily satisfy S&P’s market cap and profit eligibility criteria, but were passed over in favor of fintech Block (XYZ).

Other top contenders for inclusion would be Interactive Brokers (IBKR), EMCOR (EME), and Comfort Systems USA (FIX), the three largest components of the mid-cap S&P 400.

https://www.investopedia.com/why-the-s-and-p-500-may-get-a-new-member-soon-11782865