1. WBD plans to split into two public companies by mid-next year. 2. Streaming & Studios will include HBO Max and Warner Bros. studios. 3. Global Networks will consist of cable channels like CNN and TNT. 4. WBD shares rose initially but dropped 3% later in trading. 5. CEO David Zaslav will lead the Streaming & Studios segment.
The planned split may unlock shareholder value, much like past restructurings (e.g., Disney's spin-offs). Such moves often lead to initial stock price increases despite short-term dips.
The split indicates strategic realignment, which can attract investor interest and may positively influence WBD’s future performance.
Structural changes typically take time to reflect in stock performance. Previous splits and restructures show long-term value creation, as seen in the cases of Netflix and Disney.