Warner Bros. Discovery stock surges after announcing split into two independent companies
From Yahoo Finance: 2025-06-09 11:27:00
Warner Bros. Discovery stock surged as the company announced plans to split into two independent entities: one for streaming and studios, the other for global networks. The move aims to enhance strategic focus and shareholder value. Executives Zaslav and Wiedenfels will lead the respective businesses until the separation is finalized.
The streaming and studios company will include HBO, Warner Bros. TV, DC Studios, and more, while the global networks company will house CNN, Discovery, and others. The separation, expected to close by mid-2026, aims to reduce debt and unlock value for shareholders. Analysts see potential for further transactions to benefit both entities.
WBD’s decision to split follows a trend in the media industry, with Comcast and Disney also exploring divestitures and spin-offs. The move comes amidst financial pressures, including a hefty debt load and challenges in the media landscape. The separation is seen as a strategic move to adapt to the changing dynamics of the industry and capitalize on growth opportunities.
Legacy media companies have faced turbulence as streaming services disrupt traditional pay TV models. Revenue streams have shifted, prompting companies to adjust their strategies by introducing ad-supported streaming tiers, raising subscription prices, and exploring bundled offerings. The industry-wide shift reflects a broader trend towards digital platforms and evolving consumer preferences. The recent merger announcement failed to address the decline of linear TV business, a glaring issue at the time. Warner Bros. Discovery’s decision to rebrand its streaming service back to HBO Max reflects a company struggling to adapt to industry disruptions.
For more stock market news and analysis, visit Yahoo Finance. Stay updated on the latest financial and business news from Yahoo Finance. Follow Senior Reporter Allie Canal on Twitter, LinkedIn, and email for more insights.
Read more at Yahoo Finance: Warner Bros. Discovery stock pops as company confirms it will split into 2 companies