Warner Bros. Discovery (WBD) News Today

Warner Bros. Discovery, Inc. (NASDAQ: WBD) shares have risen on growing investor confidence in its plan to split into two focused companies and on fresh analyst support.

• Strategic separation: WBD will form “Streaming & Studios” (HBO, Max, Warner Bros. content, DC Studios) and “Global Networks” (CNN, TNT, Discovery), targeting a reduction of the conglomerate discount.
• Strong Q1 results: Streaming added 5.3 million subscribers, ad revenue jumped 35%, and WBD generated over $300 million in free cash flow, underpinning the growth story.
• Analyst upgrades: Guggenheim reaffirmed a Buy rating; Barrington Research reiterated an Outperform with a $16 price target; consensus from 22 brokerages is a Moderate Buy (average target $12.17).
• Debt‐allocation move: The split assigns most of the existing debt to Global Networks, cleansing the balance sheet of the streaming/studios unit and boosting its valuation potential.
• Hold rating maintained: Needham & Company reiterated a Hold, reflecting some caution despite widespread optimism.
• Industry analysis: Forbes and Seeking Alpha articles outline what to watch post-split and the broader M&A context without issuing definitive buy/sell calls.
• Breakup costs: A Seeking Alpha note warns the separation may incur significant one-time expenses, which could offset near-term shareholder returns.

Overall, investors are focusing on the execution risk of the split and whether each new company can deliver on its growth and debt‐reduction objectives.