Warner Bros. Discovery Stock Jumps on Report of Possible Split

Shares of media company Warner Bros. Discovery (WBD) popped Thursday following reports that the company was considering a split. 

The wide-ranging media company known for brands like HBO, MAX, CNN, and Adult Swim is moving toward some kind of split, CNBC’s David Faber said earlier today, adding that “we could get some sort of an announcement in the not-too-distant future.” (A detailed transcript of Faber’s comments is available on CNBC’s website.)

A split “will take quite some time to actually happen,” Faber said. The company in December announced a restructuring, at the time saying the changes—creating one division focused on global linear TV and another with its film studios and global streaming platform—would “increase optionality to pursue further value creation opportunities for both divisions in an evolving media landscape.”

Comcast (CMCSA), meanwhile, late last year said it would spin off its cable TV networks.

The news helped Warner Bros. Discovery shares gain more than 5% in Thursday trading, leaving the company down roughly 15% so far this year. Spokespeople for Warner Bros. Discovery did not respond to Investopedia’s request for comment in time for publication. 

The company earlier today reported first-quarter financial results that included a year-over-year drop in revenue.