From CNBC: 2025-06-09 12:48:00

Warner Bros. Discovery to split into two public companies by next year, focusing on streaming and studios as well as global networks. CEO David Zaslav to lead streaming and studios company, with CFO Gunnar Wiedenfels becoming CEO of global networks. Split expected to be completed by mid-2026, confirmed after earlier restructuring moves. Warner Bros. Discovery shares up over 2% on news.

Warner Bros. Discovery follows Comcast in separating traditional pay-TV networks from broader media businesses. Comcast’s NBCUniversal spinning out cable networks into new company called Versant. WBD’s large portfolio of cable TV networks formed from 2022 merger of Warner Bros. and Discovery. Industry shifts to streaming to reach profitability, traditional TV networks remain profitable but have prompted reevaluation.

WBD executives emphasize autonomy for each company post-split, willing to forgo tax benefits for the right deal. Zaslav calls for deregulation and more consolidation in media industry amid disruption. NBCUniversal’s cable network separation aims to boost business investment and potential mergers. WBD’s consolidation from Warner Media and Discovery merger in 2022 aims to alleviate debt load. S&P cuts company’s credit rating to junk status due to traditional TV revenue declines. Debt to be divided between separated companies upon completion of split, with focus on repayment and strong liquidity for global networks business.



Read more at CNBC: Warner Bros. Discovery to split into two public companies by next year