Warner Bros Discovery is reportedly considering selling a 20% stake in its studio and streaming business to get full value before the company splits in two next year. The move aims to ensure the business is valued at its highest potential.
Warner Bros. Discovery (NASDAQ: WBD) is reportedly exploring the sale of a 20% stake in its studio and streaming business to maximize value before the company splits into two separate entities next year. The move is part of an effort to ensure that the business is valued at its highest potential [1].
The company's CFO and future Global Networks CEO, Gunnar Wiedenfels, revealed that the sale is being considered to achieve "full value" for the stake before the official separation. This separation is expected to occur in the second quarter of 2026, with one entity focusing on streaming and the other on television networks [2].
Wiedenfels emphasized that the sale is a "huge building block" in the overall transaction, aiming to secure an "equity injection at the right valuation" and help reduce the companies' debt. He also noted that the company has already received interest from potential buyers about discussing a potential sale [1].
Upon the official separation, Discovery Global will house CNN, TNT Sports, Discovery, Discovery+, and Bleacher Report, along with a majority of the company's $35.6 billion in gross debt. Warner Bros. will retain the studios and streaming business, including Warner Bros. Television Group, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, Warner Bros. Games, Tours, Retail and Experiences, and studio production facilities in Burbank and Leavesden [2].
The potential sale of the 20% stake is part of a broader strategy to optimize the valuation of both entities and ensure a smooth transition in the upcoming split. The move is expected to be a significant step in Warner Bros. Discovery's financial restructuring and future growth plans.
References:
[1] https://seekingalpha.com/news/4492043-warner-bros-discovery-considering-sale-of-studio-and-streaming-service-stake---report
[2] https://www.thewrap.com/discovery-global-warner-bros-stake-sale-talks/
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