Warner Bros. Discovery’s plan to split into two publicly traded companies sent its stock price surging higher on Monday morning, with shares of WBD jumping 13% to $11.10 on the Nasdaq exchange only minutes after the opening bell.
But those early gains were fleeting, as Warner Bros. Discovery’s stock closed the day at $9.53 per share — down nearly 3% from where it closed last week. Here is an up-to-the-minute look at WBD:
On the year, WBD is down 10.60%, and the company’s stock price has been more than sliced in half since it debuted on the Nasdaq in 2022 for $24.08 per share. That came after WarnerMedia and Discovery merged — a move that was met with a collective shrug from Wall Street analysts and investors from the start, with its stock price increasing 0.8% on April 11, 2022, its first day of trading.
Now, three years later, WBD announced on Monday it will split into two companies, with one company focused on its global cable channels and another dedicated to its movie and streaming businesses.
David Zaslav, president and CEO of WBD, will become president and CEO of Streaming & Studios, while Gunnar Wiedenfels, WBD’s CFO, will serve as president and CEO of Global Networks. The separation is expected to be completed by mid-2026.
“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” Zaslav said in a statement.
The new Streaming & Studios operation will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, in addition to their corresponding film and television libraries. Global Networks, meanwhile, will include international entertainment, sports and TV news brands such as CNN, TNT Sports, Discovery, Discovery+, Bleacher Report and European free-to-air channels.
In related news, WBD investors last week voted to reject a $51.9 million compensation package for Zaslav.
