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6d ago

Warner Bros. Discovery to Separate Streaming and Networks Units by Mid-2026

Warner Bros. Discovery plans to spin off its debt-laden cable networks to free its streaming and studios arm for market-driven growth.

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Overview

  • David Zaslav announced on June 9 that Warner Bros. Discovery will form two public companies—WBD Streaming & Studios and WBD Global Networks—by mid-2026 to isolate growth and legacy assets.
  • The Global Networks unit will retain most of the company’s $34 billion net debt and hold up to a 20 percent stake in the streaming and studios business to aid in deleveraging.
  • A $17.5 billion bridge loan has been arranged to support operations and liquidity until the split is finalized.
  • Warner Bros. Discovery’s stock has declined nearly 60 percent since the April 2022 merger, and S&P Global Ratings downgraded its debt to junk status in May 2025.
  • Investor Ross Gerber has publicly criticized CEO David Zaslav’s leadership, and filings show McKinsey & Company was paid over $150 million since 2022 for merger and rebranding advice.