Warner Bros. Discovery shares surge 9%: market bets big on 2026 corporate split

Warner Bros. Discovery's planned 2026 split into streaming and networks arms has energized investors, driving a 9% stock jump. The move strategically spins off $37 billion debt with TV networks, freeing streaming to scale content and boost shareholder value.

Sources:
The Hollywood ReporterThe IndependentCnbc+1
Updated 17h ago
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Sources: The Hollywood ReporterThe IndependentCnbc+1
Warner Bros. Discovery announced a strategic split into two publicly traded companies by mid-2026, sparking a nearly 9% surge in its shares.

The division will create a streaming and studios company led by CEO David Zaslav, and a global networks business headed by CFO Gunnar Wiedenfels. The networks company, which includes Warner's entertainment, sports, and news channels such as CNN and Discovery, will retain a 20% stake in the streaming unit.

This move follows the 2022 merger of WarnerMedia and Discovery, which resulted in over $50 billion in debt. Since then, Zaslav has focused on reducing this burden, cutting $21 billion in debt over three years. At the end of March, Warner Bros. Discovery reported a gross debt of $38 billion, including $37.4 billion in total debt.

The split aims to invigorate each company by allowing them to leverage their unique strengths and financial profiles. It is expected to enable the streaming unit to scale content production without being weighed down by the declining cable networks.

"This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles," the company said, emphasizing the potential to "pursue important investment opportunities and drive shareholder value."

The networks business will hold a significant portion of the debt, while a "not-insignificant portion" will remain with the streaming and studios company under Zaslav's leadership.

The corporate split aligns Warner Bros. Discovery with industry trends, mirroring Comcast's recent spin-off of most of its cable TV networks.

This strategic restructuring is designed to better position Warner Bros. Discovery in the competitive streaming landscape and improve financial flexibility for both entities.
Sources: CnbcFoxbusinessThe Independent
Warner Bros. Discovery shares surged nearly 9% after announcing a planned 2026 split into two publicly traded companies: a streaming and studios business led by CEO David Zaslav, and a global networks company headed by CFO Gunnar Wiedenfels. The move aims to reduce debt and boost shareholder value.
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The Headline

Warner Bros. Discovery to split into two companies by 2026

This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value.
David Zaslav
CEO of Warner Bros. Discovery
The Independent
Key Facts
  • Warner Bros. Discovery announced plans to split into two publicly traded companies by mid-2026, separating streaming and studios from cable TV networks.CnbcFoxbusiness
  • Streaming and studios will be led by CEO David Zaslav, while the global networks business will be run by CFO Gunnar Wiedenfels.FoxbusinessThe IndependentCnbc
  • The networks company will include CNN, Discovery, and sports channels and will hold a 20% stake in the streaming unit.Cnbc
  • Majority of the $37 billion debt will be spun off with the TV networks, while a significant portion remains with streaming and studios under David Zaslav.
  • Warner Bros. Discovery shares jumped nearly 9% following the announcement of the corporate split.CnbcFoxbusiness
Key Stats at a Glance
Warner Bros. Discovery shares increase after split announcement
9%
CnbcFoxbusiness
Debt amount to be spun off with TV networks
$37 billion
Networks company stake in streaming unit
20%

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Warner Bros. Discovery to Split Into Two Public Companies
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Background Context

Merger debt and CEO's $21B reduction efforts

Key Facts
  • The 2022 merger of WarnerMedia and Discovery created more than $50 billion of debt, burdening the combined company significantly.The Hollywood Reporter
  • Since the merger, CEO David Zaslav has cut $21 billion of debt over three years, focusing on reducing the company1s massive debt load.The Independent
  • At the end of March, Warner Bros. Discovery had gross debt of $38.0 billion, including total debt of $37.4 billion and financial leases of $535 million.The Hollywood Reporter
Key Stats at a Glance
Warner Bros. Discovery gross debt at end of March
$38.0 billion
The Hollywood Reporter
Warner Bros. Discovery total debt at end of March
$37.4 billion
The Hollywood Reporter
Warner Bros. Discovery financial leases at end of March
$535 million
The Hollywood Reporter
Debt created by 2022 WarnerMedia and Discovery merger
$50 billion
The Hollywood Reporter
Debt reduction by CEO David Zaslav since 2022 merger
$21 billion
The Independent
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