Warner Bros. Discovery to split into two media companies

June 09, 2025 10:35 PM AEST | By Investing

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Warner Bros. Discovery to split into two media companies — Image source: Kalkine Media

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Investing.com -- Warner Bros. Discovery (NASDAQ: NASDAQ:WBD) shares paused trading on Monday pending a significant announcement. The company revealed plans to separate into two leading media corporations.

The division will result in two distinct entities: Streaming&Studios, and Global Networks. The separation is intended to boost the potential of each business by focusing on their respective strengths.

Streaming&Studios will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. This division aims to expand HBO Max, which is slated to enter new markets by 2026, and reach a minimum of $3 billion in yearly adjusted EBITDA.

Global Networks will house global entertainment, sports, and news television networks like CNN and TNT Sports in the U.S., along with digital products such as Discovery+ and Bleacher Report. This segment currently reaches over 1.1 billion unique viewers in 200 countries and territories and is known for its high margins and strong free cash flow conversion.

David Zaslav will continue as President and CEO of Streaming&Studios, and Gunnar Wiedenfels will become President and CEO of Global Networks. Both will retain their current roles at WBD until the separation is complete. The restructuring is designed to give each company the strategic flexibility needed to compete in the fast-changing media landscape.

The Warner Bros. Discovery Board, led by Samuel A. Di Piazza, Jr., believes this transaction will increase shareholder value and is part of their commitment to realizing the full value of the company’s assets.

Both companies will be well-funded, with Warner Bros. Discovery having initiated tender offers to enhance its debt portfolio, supported by a $17.5 billion bridge facility from J.P. Morgan. Global Networks will retain up to a 20% stake in Streaming&Studios, which it plans to monetize to improve its balance sheet.

The separation is expected to be completed by mid-2026, subject to approval by the Warner Bros. Discovery Board, tax rulings, and market conditions. After the announcement, shares rose over 10%.

This article first appeared in Investing.com

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