Warner Bros. Discovery To Split via Spinoff, Stock Price Rises Over the News

Only a few years after having been formed due to the merger of WarnerMedia and Discovery in 2022, Warner Bros. Discovery is now engaging in a corporate split that would see it divided into two distinct media entities, according to FOX Business.

When the dust settles following the split, WBD Streaming & Studios, comprised of Warner Bros. Pictures, HBO, Max/HBO Max, and others, will be helmed by WBD chief David Zaslav, as Variety detailed, while WBD Global Networks — made up of, in part, by CNN, TNT, TBS, HGTV, Discovery Channel, Cartoon Network, Adult Swim, and more — will be responsible for handling most of the network television properties. The latter firm will be led by CFO Gunnar Wiedenfels.

“The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history,” said Zaslav, via a June 9 press release.

“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,” he added.

The bulk of Warner Bros. Discovery’s existing debt, totaling about $34 billion in net debt as of Q1 2025, is to be assigned to WBD Global Networks following the conclusion of the split, per Variety. The transition is planned to involve a tax-free separation of the businesses for U.S. federal income tax purposes, and WBD Global Networks will retain up to a 20% stake in WBD Streaming & Services in the hopes to monetize that stake in a tax-efficient manner — with stated plans to enhance the “de-leveraging of its balance sheet.”

“J.P. Morgan and Evercore are serving as financial advisors to Warner Bros. Discovery and Kirkland & Ellis LLP is serving as legal counsel,” the company noted in its press release.

Warner Bros. Discovery Stock Price Trends Upward Over News of Corporate Split

Investors seemed at least mildly interested in where this slated corporate split could be headed, with Warner Bros. Discovery stock prices trending upward by 2.09% as of 12:49 p.m. ET on June 9.

That improvement was slightly less impressive than the initial ~8% surge for share prices evidenced in morning trading, however.

Notably, the split could align the network side of the equation with Comcast, which is also engaged in the process of spinning off a significant portion of its cable TV networks.

FOX Business quoted Bank of America research analyst Jessica Reif Ehrlich, who indicated that Warner Bros. Discovery’s existing cable TV assets would be a “very logical partner” for Comcast’s planned spinoff entity.