09:47 AM EDT, 06/09/2025 (MT Newswires) -- Warner Bros. Discovery ( WBD ) said Monday it plans to split into two independent publicly traded companies, one focused on the media and entertainment giant's streaming and movies business and the other on its television networks portfolio.

The streaming and studios company will include Warner Bros. Television, Warner Bros. Motion Picture Group and the HBO Max streaming service, according to the group. Warner Bros. Chief Executive David Zaslav will lead the entity in the same post.

The global networks company will include Warner Bros.' entertainment, sports and news television brands, including CNN, TNT Sports in the US and Discovery, as well as the Discovery+ streaming service. Chief Financial Officer Gunnar Wiedenfels will lead the company as CEO. The global networks company will hold up to a 20% retained stake in the streaming and studios entity, with a monetization plan to enhance the de-leveraging of its balance sheet, Warner Bros. said.

Shares of Warner Bros. climbed 11% in Monday trading.

"By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape," Zaslav said in a statement.

Last month, Warner Bros. reported first-quarter revenue below Wall Street's projections amid declines in global linear networks and streaming and studios. The company's loss for the three-month period narrowed more than expected.

Late last year, Comcast (CMCSA) announced plans to spin off certain cable networks into a separate publicly traded company.

The Warner Bros. split, which requires final approval by the company's board, among other conditions, is expected to complete by the middle of next year. Zaslav and Wiedenfels will continue in their current roles at the company until the separation.

"This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles," according to Wiedenfels. "This will also allow each company to pursue important investment opportunities and drive shareholder value."

In a separate statement, Warner Bros. said the company and its subsidiaries launched tender offers to purchase up to $14.6 billion of its outstanding notes and debentures. The offers are expected to expire on July 9.

Price: 10.74, Change: +0.91, Percent Change: +9.32