Trading in Warner Bros. shares Discovery was suspended on Monday pending an important announcement. The company announced plans to split into two leading media corporations.
The separation will create two structures: Streaming & Studios and Global Networks. This division aims to increase each business’s potential by concentrating on its 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 scheduled to enter new markets by 2026 and achieve at least річної 3 billion in annual adjusted EBITDA.
Global Networks will include global entertainment, sports, and news television networks such as CNN and TNT Sports in the United States, as well as digital products including Discovery+ and Bleacher Report. The segment covers over 1.1 billion unique viewers in 200 countries and territories. It is known for its high margins and strong free cash flow conversion.
David Zaslav will continue to serve as president and CEO of Streaming & Studios. At the same time, Gunnar Wiedenfels will become president and CEO of Global Networks.
Both will retain their current roles in WBD until the separation is completed. The restructuring is designed to give each company the strategic flexibility it needs to compete in a rapidly changing media landscape.
The Warner Bros. Discovery Board of Directors, led by Samuel A. Di Piazza Jr., believes that the deal will increase shareholder value and is part of its commitment to realizing the full value of the company’s assets.
Both companies will be well funded: Warner Bros. Discovery has initiated tenders to improve its debt portfolio, supported by мост 17.5 billion in bridge funding from JP Morgan. Global Networks will retain up to 20% of its stake in Streaming & Studios, which it plans to monetize to improve its balance sheet.
The division is expected to be completed by mid-2026, subject to approval from the Warner Bros. Board of Directors. Discovery, tax regulations, and market conditions. After the announcement, the stock rose by more than 10%.