By Andrew Bary

Robinhood Markets or AppLovin soon could join the S&P 500 if Paramount Global is dropped from the index after its merger deal with Skydance Media on Aug. 7.

Robinhood and AppLovin are the two largest companies that aren't in the index. Both companies were snubbed during recent additions to the index, including the most recent one announced on July 18 when Block replaced Hess after the energy company was purchased by Chevron.

AppLovin has a market value of $122 billion, and Robinhood weighs in at around $91 billion. S&P Dow Jones Indices, which oversees the S&P 500, usually gets around to adding the biggest companies not in the index but it has complete discretion about which companies get added when.

Other companies with large market capitalizations and thus admission candidates include Carvana, Ares Management, Cheniere Energy, Flutter Entertainment, Veeva Systems and Ferguson Enterprises.

Other candidates are Emcor and Interactive Brokers, the two biggest companies in the S&P MidCap 400 index.

Skydance is buying a controlling stake of about 70% in Paramount in a complex transaction due to close on Aug. 7.

It's a good bet -- but not certain -- that Paramount gets dropped because its new market value should be about $11 billion, based on its current stock price and deal terms, Barron's estimates.

That's about half the current minimum for new additions. The public float in the company could total less than $4 billion since Skydance is due to own about 70% of the company.

S&P Dow Jones Indices could move Paramount to the S&P MidCap 400 index. If that happens, mid-cap index members Emcor or Interactive Brokers could get elevated to the S&P 500 instead of other candidates.

Write to Andrew Bary at andrew.bary@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 30, 2025 18:24 ET (22:24 GMT)

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