Warner Bros. Discovery shares soared on Wall Street today, climbing 6.8% in pre-market Nasdaq trading, after the entertainment giant announced a sweeping plan to split its sprawling business into two publicly traded companies by next year.
The move marks a defining moment for the legacy media conglomerate as it seeks to sharpen its strategic focus and unlock greater value for shareholders in a rapidly shifting media landscape.
The planned separation, revealed Monday, will see Warner Bros. Discovery carve out its Streaming & Studios division—encompassing Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max—into a standalone company.
Meanwhile, the newly formed Global Networks entity will house CNN, TNT Sports, Discovery Channel, and a portfolio of major international networks and digital brands, including Discovery+ and Bleacher Report.
David Zaslav, the current CEO of Warner Bros. Discovery, will lead the Streaming & Studios company, while Chief Financial Officer Gunnar Wiedenfels is set to become CEO of Global Networks. Both executives will remain in their present roles until the split is finalized, which is expected by mid-2026.
This strategic overhaul comes as the company faces mounting pressures from cord-cutting consumers and the ongoing migration from traditional cable television to direct-to-consumer streaming platforms. The split aims to provide each business with the agility and focus needed to compete more effectively, allowing investors to evaluate the distinct financial profiles and growth prospects of two fundamentally different operations.
The Streaming & Studios division will focus on scaling the HBO Max platform, investing in world-class programming, and leveraging its vast library of intellectual property for sustainable growth. In contrast, Global Networks will concentrate on maximizing its robust free cash flow, expanding live content offerings in sports and news, and growing digital extensions of its strong network brands.
Financially, the majority of Warner Bros. Discovery’s $37 billion debt is expected to be allocated to the Global Networks entity, with a significant portion remaining with Streaming & Studios. Both companies are projected to be well-capitalized, supported by a $17.5 billion bridge facility to ensure a smooth transition.
This bold restructuring underscores Warner Bros. Discovery’s commitment to delivering long-term value to shareholders and adapting to the evolving demands of the global media industry. As the company embarks on this new chapter, investors and industry observers will closely watch how each entity navigates the challenges and opportunities of an increasingly fragmented entertainment landscape.
