Warner Bros. Discovery Stock Surges 2% in 2025 Amid Strategic Split Talks
Warner Bros. Discovery is exploring options to separate its Warner Bros. movie studio and Max streaming service from traditional TV networks, signaling potential major shifts in the media landscape.
Highlights
- Warner Bros. Discovery (WBD) is evaluating a potential spin-off or sale of its Warner Bros. film studio and Max streaming platform.
- Since the 2022 merger of AT&T's WarnerMedia and Discovery, WBD's shares have dropped by approximately 66%.
- Following news reports, WBD stock climbed nearly 2% on Friday as investors reacted to the possible restructuring.
Warner Bros. Discovery shares rose close to 2% on Friday after the Financial Times revealed that the company is considering separating its iconic Warner Bros. movie studio and Max streaming service from its legacy television networks. This strategic move aims to unlock value and refocus company assets.
According to insiders cited in the report, Warner Bros. Discovery may either sell off or spin off its movie and streaming divisions into an independent company. This announcement sparked increased investor interest amid ongoing challenges since the 2022 merger.
The media giant’s stock has suffered a steep decline, losing nearly two-thirds of its value since the historic merger that formed the current Warner Bros. Discovery entity.
In addition, Warner Bros. Discovery is actively bidding to retain a portion of the National Basketball Association's (NBA) lucrative media rights. The NBA has offered WBD the chance to match a $1.8 billion bid from Amazon Prime Video for a package of games, with a five-day window to respond.
WBD owns Turner Sports, broadcaster of the long-running "Inside the NBA" show on TNT since 1989. The NBA's media rights deal, encompassing ESPN, ABC, NBCUniversal, and others, totals approximately $76 billion over 11 years, with Warner Bros. Discovery's NBA games accounting for about $2.2 billion of the package.
Correction: This article has been updated to accurately reflect the duration "Inside the NBA" has aired and details of the NBA media rights holders.
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