Shares of Warner Bros. Discovery (WBD) surged almost 8% in early Monday trading after the company unveiled plans to break into two independent, publicly traded entities. The strategic split will separate WBD’s streaming and studio operations from its global television networks business, with the transaction expected to be completed by mid-2026.
In a statement, the company said the move aims to “unlock shareholder value” by sharpening the strategic focus of each business. By operating independently, both entities will be positioned to move “faster and more aggressively” in pursuing growth opportunities across their respective sectors.
David Zaslav, currently president and CEO of Warner Bros. Discovery, will lead the new streaming and studios unit. Gunnar Wiedenfels, the company’s CFO, is set to become president and CEO of the newly carved-out global networks business. Both executives will maintain their current roles until the separation is finalized.
The announcement comes amid mounting speculation over a potential breakup, driven by WBD’s efforts to manage its hefty $38 billion debt burden, streamline its sprawling operations, and reignite momentum in a rapidly shifting media environment. The company reported $2.2 billion in debt repayment during the first quarter of 2025, a step seen as part of its broader restructuring efforts.
Investors appeared to welcome the news, betting that a leaner structure could improve financial performance and strategic clarity. The stock’s strong early gains reflect renewed optimism that WBD’s long-awaited transformation could finally deliver.
