Warner Bros. Discovery (WBD) is making big moves—and Wall Street is taking notice.
On Monday, the media giant announced it will separate into two public companies: one focused on streaming and film studios (like HBO and Warner Bros. Pictures), and another that will house traditional cable networks, including CNN, Discovery Channel, and TNT Sports.
The news sent WBD shares climbing as much as 10% in early trading, reflecting investor confidence in the decision to untangle two very different parts of the business.
In today’s fast-changing media landscape, streaming platforms like Max and studio content (such as blockbuster movies and DC franchises) are growing in one direction, while traditional cable networks face a different set of challenges.
CEO David Zaslav said the move allows each business to focus more clearly on its strengths.
“This gives both companies a chance to better serve their audiences and compete in their own ways,” Zaslav explained.
After the announcement:
WBD shares jumped by up to 10% in premarket trading.
The stock reached a daily high of $10.93, compared to a prior close around $9.81.
It settled around $9.82 by midday—still reflecting a solid increase and renewed optimism.
This surge helped WBD recover most of its losses from earlier in the year.
If you’re a fan of CNN, HBO shows, or Discovery documentaries, don’t worry—your favorite channels and platforms aren’t disappearing. The split is about business structure, not content removal.
CNN, for example, will continue to operate under the new “Global Networks” company, while hit shows and movies will live under the “Streaming and Studios” umbrella.
Media analysts have praised the move for bringing more clarity.
“By separating these units, investors can better understand the value of each business,” said Kara Jameson, a media strategy consultant. “It also helps each team focus on what they do best—whether that’s creating blockbuster films or delivering trusted news coverage.”
The split isn’t final yet. Warner Bros. Discovery plans to complete the process by mid-2026, pending regulatory and shareholder approval.
In the meantime, viewers and employees alike can expect more updates as the company reorganizes with the goal of staying competitive—and connected—to a global audience.
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