Warner Bros Discovery To Split Into Two Companies, Announces Offerings To Restructure Existing Debt

Warner Bros. Discovery

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(RTTNews) - Warner Bros. Discovery, Inc. (WBD), Monday announced its decision to split into two publicly traded companies -Streaming & Studios company, and Global Networks, enabling them to leverage their strengths, pursue strategic investment opportunities, and drive shareholder value.

As per the tax-free separation process, expected to close by mid-2026, Global Networks will own upto a 20 percent retained stake in Streaming & Studios, which is expected to enhance the de-leveraging of its balance sheet.

The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, whereas Global Networks will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products.

Concurrently, the media company announced that its subsidiaries Discovery Communications, LLC, WarnerMedia, LLC, WarnerMedia Holdings, Inc., and Historic TW Inc. have commenced tender offers and related consent solicitations to buy all of their outstanding notes and debentures for upto $14.6 billion.

Notably, The tender offers and related consent solicitations will enhance its debt portfolio, which will be funded by a committed bridge facility of $17.5 billion provided by J.P. Morgan. The bridge facility is expected to be refinanced prior to the separation, the company added.

In the pre-market hours, WBD is trading at $10.72, up 9.17 percent on the Nasdaq.