Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) shares rose on Monday after the media giant announced plans to separate into two independent, publicly traded companies, Streaming & Studios and Global Networks, by mid-2026.
The split is intended to enhance operational agility and strategic clarity across Warner Bros Discovery's diverse media holdings.
"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,” CEO David Zaslav said in a statement.
Streaming & Studios will include Warner Bros Television, Warner Bros Motion Picture Group, DC Studios, HBO, and the HBO Max streaming platform, as well as Warner Bros Games, Tours, and studio operations in Burbank and Leavesden.
Zaslav will lead this entity, which will prioritize scaling HBO Max globally and strengthening its content pipeline. The business is targeting $3 billion in annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Global Networks will comprise CNN, TNT Sports, Discovery, free-to-air networks in Europe, and digital assets such as Discovery+ and Bleacher Report.
Warner Bros Discovery’s CFO Gunnar Wiedenfels will become President and CEO of this division, which serves 1.1 billion viewers in over 200 countries. The company will focus on international growth, live content, and digital extensions of its brands.
The tax-free separation will include arm’s length transition services and capital restructuring, supported by a $17.5 billion bridge facility from JP Morgan. Global Networks will retain up to a 20% stake in Streaming & Studios, which it intends to monetize to support deleveraging.
Shares of Warner Bros Discovery added 8.5% at $10.65 on Monday morning.