Warner Bros Discovery Surges to 36th in Trading Volume Despite Stock Decline Amid Split Announcement

On June 9, 2025, Warner Bros. Discovery (WBD) saw a significant surge in trading volume, with a total of 15.71 billion shares traded, marking a 429.96% increase from the previous day. This substantial trading activity placed WBD at the 36th position in terms of trading volume for the day. However, despite the high trading volume, the stock price of WBD experienced a decline of 2.95%.

Warner Bros. Discovery has announced its plan to split into two publicly traded companies, separating its studios and streaming business from its traditional cable television operations. This strategic move aims to enhance the production of streaming content and improve the overall efficiency of the company's operations. The separation is expected to be completed by mid-2026 and will be structured as a tax-free transaction for U.S. federal income tax purposes. The two new companies will be distinct entities, with one focusing on streaming and the other on traditional TV networks. This decision comes as the media industry undergoes significant changes, with a push for more consolidation and deregulation. The split is also seen as a way to address the company's debt load, which has been a concern since the merger of Warner Media and Discovery in 2022. The company has already repaid $19 billion in debt but still has a significant amount of net debt. The debt will be divided between the two new companies, with the majority expected to be allocated to the global networks business. Both companies are projected to have strong liquidity, with the global networks business generating significant free cash flow to further repay debt.