Warner Bros. Discovery pops after media titan says it’ll split into two companies
The split will carve out two empires for the media giant: one for streaming and blockbusters, the other for cable channels and global TV.
Warner Bros. Discovery shares jumped 10% in early trading after the media giant announced plans to split into two publicly traded companies.
The new Streaming & Studios unit will house Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with the company’s deep film and TV library. The second unit, Global Networks, will include CNN, TNT Sports, Discovery, international free-to-air channels, and digital assets like Discovery+ and Bleacher Report.
Rumors of a spin-off have been swirling for months. In December, WBD unveiled a new internal structure separating its TV networks from its streaming and studio arms, signaling a potential breakup. That speculation heated up last month, when CNBC reported the company was weighing a formal split.
Today’s announcement follows a wave of restructuring across legacy media. Lionsgate recently finalized its Starz separation, and Comcast carved out its cable networks into a stand-alone entity, Versant. With streaming on the rise and linear TV in rapid decline, old-guard media firms are under pressure to adapt.
“We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders,” said Samuel A. DiPiazza Jr., chair of WBD’s board. He added that the move is part of the company’s ongoing effort to boost shareholder value.
Prior to today’s rally, WBD shares were already up about 21% over the past year.
