Warner Bros. Discovery (WBD) Pops 5% on Breakup Plan

Warner Bros. Discovery (WBD, Financials) led the S&P 500 Wednesday, rising 5% after announcing it will break into two public companiesone for streaming and studios, another for cable networks.

CEO David Zaslav will lead the new content-focused business, while CFO Gunnar Wiedenfels will head the networks unit. The company hopes the split, set for mid-2026, will sharpen strategy and boost value.

The news landed well with investors, though the stock remains down about 15% for the year. Analysts say the move could unlock value, especially as the company pivots away from declining cable revenues.

Still, there's baggage. Credit agencies downgraded WBD's debt to junk status, pointing to its $37 billion load. A $17.5 billion bridge loan from JPMorgan will help ease the split, but questions remain.