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Warner Bros. Discovery (WBD) is set to split into two entities: Warner Bros. (Streaming & Studios) and Discovery Global Media (Linear Networks) by 2026. This strategic move aims to enhance operational efficiency and provide clearer investment insights. WBD expects that studios and streaming will generate over $3.8 billion in combined Adjusted EBITDA by 2025, driven by a robust release pipeline.
Discovery Global Media, which includes CNN and HGTV, anticipates network revenues of $17.57 billion in 2025, with an EBITDA projection exceeding $4 billion annually. WBD has incurred over $250 million in separation costs, demonstrating its commitment to developing independently run organizations.
As of 2023, WBD shares have increased by 73.4% year-to-date, outpacing the Zacks Consumer Discretionary sector’s growth of 5.9%. The company’s projected 2025 EPS stands at 36 cents, an improvement from a loss of $4.62 a year prior.
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