Warner Bros. Discovery Split: Studio and TV Operations to Separate into Two Entities

Warner Bros. Discovery (WBD) is set to split into two parts after the completion of the linear television operations and studio operations split. The studio and streaming business will be part of Warner Bros., while the networks operations will be part of Discovery Global. Investors reacted positively to the news, giving shares a 1.5% boost. Analysts have a Moderate Buy consensus rating on WBD stock with an average price target of $13 per share, implying 5.18% downside risk.

Warner Bros. Discovery (WBD) is set to undergo a significant restructuring, separating its studio and streaming operations from its network operations. The company plans to spin off Warner Bros. and Discovery Global, with the former focusing on its studio and streaming business, and the latter handling network operations. This move follows a similar strategy employed by Comcast with NBCUniversal, aiming to increase flexibility and adapt to the shifting media landscape.

The new entities will be led by top executives from WBD. David Zaslav, the CEO of WBD, will hold the same title at Warner Bros., while Gunnar Wiedenfels, the CFO of WBD, will become the CEO of Discovery Global. The separation is expected to be completed by mid-2026, with Warner Bros. honoring the legacy of its storied past and Discovery Global leveraging its global footprint for adults, kids, and families.

Investors have reacted positively to the news, with shares of WBD trading up 1.5% on Monday, July 28, 2025. Analysts maintain a Moderate Buy consensus rating on WBD stock, with an average price target of $13 per share, implying a 5.18% downside risk. Despite a recent earnings report showing a loss of $0.18 per share and a 9.8% decline in revenue, the market's response suggests optimism about the restructuring and the potential for future growth [3].

Warner Bros. will be home to Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, and Warner Bros. Gaming Studios, among other properties. Discovery Global will oversee CNN, TNT Sports, Discovery, free-to-air channels across Europe, Discovery+, and Bleacher Report. Both entities will operate independently, with their own executive teams and strategies.

The separation is a recognition that the merger that created WBD three years ago was a misfire, eroding the value of some of the industry's most premium brands. The move aims to address the decline of legacy linear television and the shift towards streaming, a trend that has been accelerating in recent years. By separating the two entities, WBD hopes to create more agile and focused companies that can better adapt to the changing media landscape.

References:
[1] https://deadline.com/2025/07/warner-bros-discovery-separates-new-leadership-1236472293/
[2] https://www.latimes.com/entertainment-arts/business/story/2025-07-28/warner-bros-to-shed-the-discovery-name
[3] https://www.marketbeat.com/instant-alerts/stock-traders-buy-large-volume-of-warner-bros-discovery-call-options-nasdaqwbd-2025-07-28/