Warner Bros. Discovery (WBD) stock rose as much as 6% Thursday before paring some gains, driven by ongoing speculation about a potential company breakup.
CNBC’s David Faber said on air that an announcement could come “in the not-too-distant future,” suggesting WBD may be preparing to fully separate its declining linear cable networks from its studio and streaming businesses.
Warner Bros. did not immediately respond to Yahoo Finance’s request for comment.
There have been some hints at a future split. Last year, WBD said it would undergo a corporate restructuring to separate its legacy networks, including CNN, TBS, TNT, HGTV, and the Food Network, from growth drivers like studios and its streaming platform Max.
That restructuring is expected to be completed in mid-2025.
“They’ve already done all of the reapportioning necessary,” Faber said, pointing out that, for the first time, the company broke out each business segment in its Q1 earnings report, released before the bell on Thursday. According to him, that’s usually a sign that a split may be on the horizon. Still, he added, “When will that come? How will it come? That, of course, remains the question.”
Speculation about a breakup has intensified over the past year as the media conglomerate struggles to reduce debt, streamline operations, and reignite growth in a rapidly evolving media landscape. Currently, WBD has about $38 billion in total debt after repaying $2.2 billion in debt during the first quarter.
