Warner Bros Discovery to Split Streaming and Cable, Shares Rise 7.33% to $10.53

Key Moments:

Strategic Restructuring Aims to Sharpen Business Focus

Warner Bros Discovery (WBD) is planning on dividing its operations into two companies, according to an announcement issued on June 9th. The move will separate the company’s streaming and studio business from its declining cable television portfolio.

The HBO and CNN’s owner restructuring efforts seek to unbundle years of large-scale media consolidation and position the business units to operate more efficiently and independently. As part of the reorganization, CEO David Zaslav will lead the new entity comprising streaming and studio operations. The newly formed global networks division, meanwhile, will be helmed by CFO Gunnar Wiedenfels.

Deal Structure and Market Reaction

As per the announcement, WBD’s separation will take the form of a tax-free transaction and is slated for completion sometime in the summer of 2026. Under the new framework, the global networks division is slated to maintain an ownership share of up to 20% in the streaming and studio operations. This equity stake is earmarked for future monetization, with the proceeds intended to help diminish the company’s debt burden.

To facilitate the transition, Warner Bros Discovery launched tender offers to restructure its debt. Funding for this effort will come from a $17.5 billion bridge facility secured from J.P. Morgan. Moreover, the company plans to refinance this loan ahead of the formal split.

Market sentiment toward the plans was generally positive. During the pre-bell trading session on Monday, the stock price of WBD advanced by 7.33% and nearly reached $11.