How the Streaming Revolution Forced WBD’s Bold Restructuring – And What It Means for Investors

By CWEB News | 06/11/2025

Key Takeaways:

• Two new companies (WBD): “Streaming & Studios” (HBO Max, DC Films) and “Global Networks” (CNN, TNT Sports)

• 8% stock surge after announcement, but $40B debt looms

• CWEB Analysts warn: Traditional TV decline accelerates as streaming wars intensify

• Full separation by 2026 – CEO Zaslav bets big on direct-to-consumer future

Why Warner Bros Discovery is Splitting Now

The media giant’s decision to divide reflects an industry-wide pivot:

• Streaming-first focus: HBO Max and Warner Bros films will operate separately from declining cable assets

• Wall Street pressure: Investors reward pure-play streaming stocks (e.g., Netflix) over mixed conglomerates

• Legacy TV collapse: CWEB News tracked 14% year-over-year drop in cable subscribers for WBD networks

@cwebnews? original sound – CWEB

“This split gives HBO Max the autonomy to compete with Disney+ and Netflix,” notes CWEB Senior Analyst [Name].

The New Companies: Who Gets What?

Debt Allocation:

• 70-80% expected to stay with Global Networks (per media sources)

• Streaming & Studios aims for cleaner balance sheet to fund content wars

CWEB News Analysis: 3 Critical Challenges

1. Streaming Profitability

   • HBO Max added 12M subscribers in 2023, but still trails Netflix (247M)

   • Content costs: DC Universe films require $200M+ budgets

2. CNN’s Identity Crisis

   • Prime-time ratings down 18% since 2022 (Nielsen)

   • New competition from digital news (YouTube, Substack,TikTok)

3. Sports Rights Squeeze

   • TNT could lose NBA rights to Amazon in 2025

   • Discovery’s Olympics deal expires post-2024

Investor Reactions: Short-Term Gain, Long-Term Questions

• Monday’s 8% jump mirrors Paramount’s 2023 spin-off surge

• But long-term concerns persist:

  • Morgan Stanley estimates Global Networks EBITDA could drop 25% by 2027

  • Streaming profitability unlikely before 2028 (CWEB projections)

  • 

The Bottom Line: A Necessary Gamble

Warner Bros Discovery’s split acknowledges what CWEB Analysts have long argued: The future is streaming, but legacy networks can’t be abandoned overnight.

What to Watch Next:

• Q3 earnings call (August 2025) for debt structure details

• Potential asset sales (CW sources suggest TruTV may be first)

For real-time updates on this developing story, bookmark CWEB News and subscribe to our media industry newsletter.

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