What's Happening with Warner Bros. Discovery's Big Split?
USAFri Sep 05 2025
Warner Bros. Discovery is shaking things up. They're dividing the company into two sections. One will deal with films and streaming services. The other will take care of TV programs. There's a catch, though. The TV side, known as Discovery Global, will have a share in the movie studio. They'll own 20% of it, but there's talk they might sell it.
Last week, the company's stock took a small dip. Why? Because people are saying Discovery Global might sell its part of the movie studio. Buyers are already lining up. The new CEO, Gunnar Wiedenfels, hasn't said no. He wants the best deal for Discovery Global, especially since they'll have a lot of debt after the split.
Debt is a big issue for Warner Bros. Discovery. They owe about $30 billion. But they're working on paying it down. By the end of the year, they hope to cut it down a lot. Discovery Global will also take on a big part of a $17 billion loan. It's not great, but it's part of their plan.
The movie studio and streaming parts of the business are expected to make a lot of money. Around $2. 4 billion and $1. 3 billion respectively. That's good news because sports costs are going up. They're expected to rise by $300 million in 2025. And that's not even including the Olympics.
Is Warner Bros. Discovery a good bet? Wall Street seems to think so. Analysts have given it a "Moderate Buy" rating. They predict it could go up by about 17. 81%. But remember, investing is risky. Always do your own research before making any moves.
https://localnews.ai/article/whats-happening-with-warner-bros-discoverys-big-split-2e19f85e
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questions
What strategies could Warner Bros. Discovery employ to manage its debt more effectively without selling the stake?
What alternative financing options could Warner Bros. Discovery explore to avoid selling the stake?
If the studio operation becomes a hot potato, who will be left holding it?
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