latest news on Warner Bros. Discovery (WBD)

Here’s the latest update on Warner Bros. Discovery (WBD):

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## 🎯 Major Strategic Split Announced (June 9, 2025)

* Separation into two distinct publicly traded companies:

* Streaming & Studios: Will house HBO Max (Max), Warner Bros. film and TV production, DC Studios, gaming — led by current CEO David Zaslav

* Global Networks: Will include cable television assets (CNN, TNT, TBS, Discovery+), sports channels — to be headed by CFO Gunnar Wiedenfels

* The split responds to ongoing cable subscriber declines (from ~100 M to ~60 M in the U.S.) and aims to optimize operations under focused leadership teams

* Timing & Structure:

Expected to be finalized by mid‑2026, with interim steps beginning immediately .

Global Networks is anticipated to retain roughly 20% ownership in the Streaming & Studios unit, potentially raising capital via monetization

The company has arranged a $17.5 billion bridge credit facility from J.P. Morgan to support the transition

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## 📈 Market Reaction & Financial Context

WBD’s stock jumped ~11–13%** following the split announcement, indicating investor approval

Streaming & Studios saw Q1 revenue down ~10% and continues to confront rising debt, rating downgrades, and investor backlash over executive pay .

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## 🚀 Strategic Rationale & Industry Position

* This corporate reorganization reverses much of the 2022 merger logic (WarnerMedia + Discovery) to:

Allow Streaming & Studios to compete strongly against Netflix, Disney+, Amazon, etc.

Let *Global Networks** focus on stabilizing cash flow and potentially explore a future spin-off or sale for increased shareholder returns

* The structure mirrors moves by Comcast and Lionsgate, which have separated linear vs. streaming assets

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## 🔍 What to Watch Going Forward

| Monitor | Why It Matters

| Regulatory/Board Approvals | Final go-ahead required before mid‑2026 execution.

| Execution of \$17.5B Bridge Loan | Indicates financial strategy in action .

| Spin-off or sale of Global Networks | Could unlock leverage and target industry consolidation.

| Performance of Max & DC Studios | Streaming segment’s future relies on content success and subscriber growth. |-

## ✅ Summary

Warner Bros. Discovery is undergoing a bold restructuring by splitting its content creation and streaming arm from its legacy cable networks. This aims to sharpen strategic focus, enhance investor appeal, and address declining cable revenues. While the market has responded positively, the success will hinge on seamless execution, clear financial management, and the competitive performance of its streaming properties and legacy networks.