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Bondholders back plan to break up Warner Bros Discovery

Bondholders at Warner Bros Discovery have voted in favour of breaking up the business, the US entertainment giant said on Monday.

  • Warner Bros Discovery Inc
  • 16 June 2025 14:24:42

Source: Sharecast

WBD first announced last week that it planned to split into two listed businesses, with one focused on movies and streaming and the other a global networks company.

As well as producing and making films, WBD owns streamer HBO Max and myriad cable networks, including CNN, TNT Sports and Discovery.

The split is expected to complete in mid 2026.

However, the complex deal needed bondholders’ approval, and on Monday WBD confirmed it had been secured, with the vast majority in favour.

As well as voting to remove covenants that could have prevented the split, investors agreed that WBD would buy back more than $14bn of the group’s hefty $36bn of bonds at a slight premium to current market prices.

Credit investors now have until 23 June to tend their bonds.

WBD was created through the 2022 blockbuster merger of WarnerMedia and Discovery.

However, traditional pay-TV is struggling to compete with the growing popularity of streaming services. The tie-up also left WBD with a heavy debt burden that it has struggled to reduce.

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