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Warner Bros Discovery to Split into Two Public Companies

By  |  June 9, 2025

Warner Bros Discovery (WBD) announced a sweeping corporate restructuring that will split the entertainment giant into two distinct publicly traded entities, a move aimed at adapting more nimbly to the rapidly changing media landscape, according to Reuters.

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    Under the planned separation, WBD’s studios and streaming operations—including Warner Bros, DC Studios, and HBO Max—will form one company, while a second will encompass the firm’s declining cable television networks such as CNN, TNT Sports, and Bleacher Report. The decision marks a notable reversal of the high-profile 2022 merger between WarnerMedia and Discovery, which originally sought to consolidate content creation and distribution under a unified banner.

    Per a Reuters report, CEO David Zaslav will take the helm of the new streaming-and-studios company, while Chief Financial Officer Gunnar Wiedenfels is set to lead the networks unit. The split is expected to be executed as a tax-free transaction and finalized by mid-2026.

    The rationale behind the breakup centers on alleviating the streaming and studios division from the financial and operational drag of legacy cable networks, which continue to lose subscribers and advertising revenue. “We’ve continued to analyze how our industry is evolving,” Zaslav told investors. “The right path forward became increasingly clear … to separate global networks and streaming and studios into two independent, publicly traded companies.”

    Read more: Paramount Explored Warner Bros. Merger Before Skydance Deal

    The networks entity will retain up to a 20% ownership stake in its former sibling and will carry most of WBD’s debt, which stood at $38 billion as of March. In a move to manage its financial obligations, the company has secured a $17.5 billion bridge loan from J.P. Morgan to aid in restructuring its debt portfolio, according to Reuters.

    Following the announcement, WBD shares experienced sharp volatility—initially spiking by as much as 13% before dipping nearly 3% by midday. Despite the brief rally, the company’s stock remains down nearly 60% from its post-merger high, as investors grapple with concerns over subscriber attrition, fierce competition in streaming, and a heavy debt burden.

    Source: Reuters