Good morning. Three years after its formation through a merger, Warner Bros. Discovery is splitting up, and its CFO is stepping into his first CEO role.
“By operating as two distinct and optimized companies, we’re giving these iconic brands the focus and flexibility they need to compete in today’s evolving media landscape,” Zaslav said in a statement.
As of Q1 2025, Warner Bros. Discovery’s debt is about $37.4 billion. A $17.5 billion bridge loan from JPMorgan will help refinance existing debt ahead of the split. Wiedenfels will oversee a large portion of this debt as CEO of global networks. “It’s safe to assume that the majority of the debt is going to live with global networks and a smaller—but not insignificant—portion with streaming and studios,” he told investors on Monday during a call.
Once the separation is complete, neither company will face restrictions on pursuing new transactions. Global networks will retain up to a 20% stake in streaming and studios.
“We have long viewed exploring strategic alternatives, including today’s announced spin, as the best way to unlock the company’s significant unrecognized value,” wrote Jessica Reif Ehrlich, a Bank of America Securities research analyst, in a Monday note. BofA Securities maintains a buy rating and a $14 price target for the stock.
Zaslav referred to him as “hugely talented” on Monday’s call, noting his broad and diverse skill set and significant impact both financially and strategically. Wiedenfels thanked Zaslav and the board for their confidence in him.
Wiedenfels appears ready for the challenge. “I truly cannot wait to get started, and I’m as excited as ever to hit the ground running,” he said on the call.
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