Its safe to assume that the majority of Warner Bros. Discoverys roughly $37 billion in debt load will exist with the spun off Global Networks, the new companys new CEO Gunnar Wiedenfels said on Monday. A not-insignificant portion will remain with Streaming Studios, Wiedenfels said, which will remain under the eye of current WBD president and CEO David Zaslav.

Its too early to talk about a target capital structure. We havent made final decisions yet, and you know, theres a lot we need to work through between now and when this when this deal closes, Wiedendfels told media analysts on a conference call. A couple of things can be said, though. Number one, its safe to assume that the majority of the debt is going to live with global networks and and a smaller portion, but a not-insignificant portion on streaming and studios as well. Earlier on Monday, June 9, Warner Bros. Discovery announced a split that most of the industry saw coming. There will be two independently-operated, publicly-traded companies: Streaming Studios and Global Networks. Those will be renamed at some point (and probably Warner Bros. and Discovery again).

TheStreaming Studioscompany will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their legendary film and television libraries.The second business, Global Networks, will include such entertainment, sports and news television brands around the world as CNN, TNT Sports in the U.S., and Discovery, free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R).

David Zaslav, president and CEO of Warner Bros. Discovery, will serve as president and CEO of Streaming Studios.Gunnar Wiedenfels, CFO of Warner Bros. Discovery, will serve as president and CEO of Global Networks. Both will continue in their present roles at WBD until the separation.

The split is expected to close in mid-2026.

Three years ago, the very foundation of how, when, and where audiences engaged with content was undergoing fundamental change, Zaslav wrote in a memo to staff, obtained by The Hollywood Reporter, in reference to the 2022 combination of WarnerMedia and Discovery. As both organizations contemplated their futures, one truth became clear: to successfully adapt, transform, and lead in the entertainment industry of tomorrow, we needed to come together to draw on each others strengths.

Not that it was always easy.

While the work since that merger has been challenging at times, ultimately, we have succeeded in strengthening each element of our business, Zaslav said in the memo. By bringing together the Discovery and Turner networks, we have created a leader in live andunscripted television, with a truly global footprint operating at industry-leading margins. Weve transformed our direct-to-consumer offering, as HBO Max is now one of the worlds few global and meaningfully profitable streaming services. And by fusing creative brilliance with operational excellence, we have made strong progress in returning our film and television studios to industry leadership.

More to come.