Warner Bros. Discovery WBD has announced its plan to divide into two separate public entities by next year. The stock surged 8.86% in Monday pre-market.
What Happened: The media giant announced on Monday that it will divide into two entities: one focused on streaming and studios—housing its film assets and HBO Max—and another dedicated to global networks, including CNN, TNT Sports, and Discovery, among other brands.
CEO David Zaslav will lead the streaming and studios division, while current CFO Gunnar Wiedenfels is set to become CEO of the global networks unit. The separation is anticipated to be completed by mid-2026.
“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape,” Zaslav stated.
The announcement confirms earlier reports about a possible company split, following a December restructuring seen as a step in that direction. It coincides with Comcast‘s CMCSA move to spin off its cable networks, including CNBC, into a new public company called Versant.
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Why It Matters: The split announcement follows a series of significant events for Warner Bros. Discovery. In May 2025, the company reported a 9% decline in quarterly revenue to $8.98 billion, missing analyst consensus estimates.
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Furthermore, in June, an internal reorganization and an S&P debt downgrade, viewed as an “ironically positive” event, were said to have increased WBD’s strategic flexibility. This strategic flexibility could be a driving factor behind the company’s decision to split.
Benzinga's Edge Rankings place Warner Bros. Discovery in the 34th percentile for value and the 66th percentile for momentum, reflecting its mixed performance. Check the detailed report here.
On a year-to-date basis, Warner Bros stock declined 7.88%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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