Warner Bros. Discovery will split into two media giants

Warner Bros. Discovery has announced that it will be splitting into two separate media companies. One entity will retain Warner Bros. studios, HBO, and HBO Max, while the other will hold the company's live cable channels, including CNN and HGTV. The two entities will be referred to as "WBD Global Networks" and "WBD Streaming & Studios". The company believes each entity will produce healthy free cash flow and intends for each to be listed as publicly traded companies. David Zaslav will serve as president and CEO of Streaming & Studios, while Gunnar Wiedenfels will serve as president and CEO of Global Networks. The separation is expected to give the iconic brands a sharper focus and strategic flexibility to compete effectively. To assist in the separation, WBD will take a $17.5 billion loan from J.P. Morgan to buy back some of its outstanding bonds and ask bondholders to loosen their terms. The majority of the total debt will be held by Global Networks, while a portion will remain with Streaming & Studios. The exact breakdown of the debt at each entity remains to be seen, pending the outcome of the companies' debt restructuring.