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NEW YORK - Warner Bros. Discovery (NASDAQ:WBD), currently valued at $34.14 billion and trading near its 52-week high after an impressive 62% return over the past year, announced Monday that its planned corporate separation in mid-2026 will create two distinct companies: "Warner Bros." for the streaming and studios business, and "Discovery Global" for its television networks division. According to InvestingPro analysis, the stock is currently showing overbought signals, suggesting investors should carefully monitor their entry points.
The streaming and studios entity will retain the historic Warner Bros. name and encompass Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, Warner Bros. Gaming Studios, and their film and television libraries.
Discovery Global will include television brands such as CNN, TNT Sports, Discovery, and European free-to-air channels, along with digital products including Discovery+ streaming service and Bleacher Report.
David Zaslav, current President and CEO of Warner Bros. Discovery, will lead Warner Bros. as President and CEO, while Gunnar Wiedenfels, currently CFO of Warner Bros. Discovery, will serve as President and CEO of Discovery Global.
The company also announced senior leadership appointments for both entities. Warner Bros. will include executives such as Casey Bloys as Chairman and CEO of HBO and HBO Max, and James Gunn as Co-Chairman and CEO of DC Studios. Discovery Global’s leadership team will feature Mark Thompson as Chairman and CEO of CNN Worldwide and Luis Silberwasser as Chairman and CEO of TNT Sports.
Warner Bros. is currently searching for a Chief Financial Officer and Chief People & Culture Officer, while Discovery Global is looking to hire a Chief Communications & Public Affairs Officer.
According to the company statement, Discovery Global’s properties deliver content to 1.1 billion unique viewers in 68 local languages across 200 countries and territories. With annual revenue of $38.34 billion and an overall financial health score rated as GOOD by InvestingPro, the company maintains a strong market position despite current profitability challenges.
The announcement comes as Warner Bros. Discovery continues preparations for the separation scheduled for mid-2026, as previously disclosed by the company in a press release. For investors seeking deeper insights into WBD’s strategic moves and financial outlook, InvestingPro offers comprehensive analysis with 14 additional ProTips and a detailed Pro Research Report, helping you make informed investment decisions during this transformative period.
In other recent news, Warner Bros. Discovery has announced a multi-year agreement with VideoAmp to expand their partnership, offering currency measurement options for advertisers across various platforms. This deal aims to support planning and optimization for future advertising seasons. Additionally, Benchmark has reiterated its Buy rating on Warner Bros. Discovery stock, following the successful opening weekend of the new Superman movie, which grossed $122 million in North America and $217 million globally. UBS has raised its price target for Warner Bros. Discovery to $10, maintaining a Neutral rating, and anticipates improvements in Streaming & Studios profitability in the upcoming quarter. UBS forecasts revenues of $9.86 billion and an EBITDA of $1.91 billion, indicating modest year-over-year growth.
Meanwhile, Bernstein has reiterated a Market Perform rating with an $11 price target, noting the company’s progress in splitting into two entities, Streaming & Studios and Global Networks. Benchmark has also added Warner Bros. Discovery to its Best Ideas List, maintaining a Buy rating and highlighting the potential success of an upcoming Superman film directed by James Gunn. These developments reflect ongoing strategic initiatives and financial forecasts for Warner Bros. Discovery.
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