Newhouse Family Sells 100 Million Warner Bros. Discovery Shares for $1.1 Billion, Stock Drops 4.9%

The Advance/Newhouse family executed a significant transaction on July 2, 2025, selling 100 million shares of Warner Bros. Discovery at $10.97 each, totaling approximately $1.1 billion. This sale was part of a strategic move to maintain financial flexibility for estate planning and investment programs, as revealed in regulatory filings. The transaction involved 14,158,459 shares held by Advanced Newhouse Partnership and 85,841,541 shares held by A/NPP Diversified Holdings LLC. Following this sale, the Newhouse family will no longer be the beneficial owners of more than 5% of Warner Bros. Discovery's outstanding shares, as per a 13D filing with the U.S. Securities and Exchange Commission.

Warner Bros. Discovery's stock price experienced a 4.9% drop following the announcement of the sale, reflecting investor concerns over the shift in institutional holdings. This reaction underscores the market's sensitivity to changes in ownership structure, particularly when major shareholders reduce their stakes. The sale's intention, as stated, was to provide financial flexibility for ongoing estate planning, investment programs, and other general corporate purposes. This move is part of a broader strategy by the Newhouse family, known for their ownership of Condé Nast and significant stakes in Charter Communications and Reddit, to adjust their investment portfolio.

The Newhouse family, who were early investors in Discovery Communications and previously held around an 8% stake in Warner Bros. Discovery following the merger in 2022, had two board members, Steven Newhouse and Steve Miron, who resigned from their roles last year. The resignation followed a probe by the U.S. Department of Justice into whether their service on the board violated the Clayton Antitrust Act. Following the sale, the Newhouse family will beneficially own 98,181,749 shares, or a 3.97% stake, which puts them under the 5% SEC reporting threshold. This means they will no longer be required to publicly disclose their holdings.

The sale comes at a pivotal time for Warner Bros. Discovery, as the company is preparing to split its global linear networks business and streaming and studios business into two separate, publicly traded companies in 2026. The Global Networks division will include CNN, TNT Sports in the U.S., Discovery, top free-to-air channels across Europe, Discovery+, and Bleacher Report (B/R). It will retain a 20% stake in the studios and streaming business to help the company deleverage and is expected to take the majority of Warner Bros. Discovery’s roughly $37 billion in gross debt. The Studios & Streaming business will include Warner Bros. Television Group, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, Warner Bros. Games, Tours, Retail and Experiences, as well as studio production facilities in Burbank and Leavesden.

Historically, large sales by major shareholders in media companies often lead to short-term price declines. This trend is indicative of market anxiety over changes in ownership structure. However, the sale by the Newhouse family is aimed at providing financial flexibility and does not directly impact cryptocurrency assets, as noted by the lack of blockchain data changes. The transaction is part of a broader strategy to support the family's ongoing estate planning and investment programs, rather than a direct response to market volatility.

The Newhouse family's decision to sell a significant portion of their stake in Warner Bros. Discovery is a strategic move that reflects their long-term investment goals. The sale marks the end of a decades-long partnership between the family and the company, as they will no longer be required to publicly disclose their holdings. This move comes as Warner Bros. Discovery prepares for a major restructuring, which will see the company split into two separate, publicly traded entities. This restructuring is expected to help Warner Bros. Discovery deleverage and focus on its core businesses, enhancing operational efficiency and strategic focus.