What's Happening with Warner Bros. Discovery's Big Split?

The Big Split

Warner Bros. Discovery is making bold moves. The company is dividing into two distinct parts:

• Movies & Streaming
• TV Shows

The Twist: Discovery Global (TV side) will own 20% of the movie studio. But will they keep it?

Market Reactions & CEO's Stance

• Shares dropped last week due to speculation that Discovery Global might sell its stake.
• Buyers are already showing interest.
• New CEO, Gunnar Wiedenfels, hasn't ruled out a sale—he wants the best deal possible.
• This stake is critical for Discovery Global, especially with post-split debt concerns.

Debt & Financial Strategy

• Warner Bros. Discovery carries $30 billion in debt.
• They aim to reduce debt significantly by year-end.
• Discovery Global will take on a large portion of a $17 billion loan.

Revenue Expectations

• Studio & Streaming expected to generate:
• $2.4 billion (Studio)
• $1.3 billion (Streaming)
• Sports expenses rising by $300 million in 2025 (excluding Olympics).

Investment Outlook

• Wall Street's Verdict: "Moderate Buy" rating.
• Predicted upside: ~17.81%.
• Caution: Investing carries risk—do your own research.