Shares of Warner Brothers Discovery rising after announcing it will split into two public companies, one that includes movie properties and streaming service and another that includes news and sports divisions among other businesses. Here with the details, we've got Yahoo! Finance senior reporter, Ally Canal. Ally, what do we know?

Hey, guys. Well, this there was hints around this, right? We knew that the company was restructuring. They wanted to separate the streaming studio side from the network side. We've seen similar moves from other legacy players like Comcast, which will spin off most of its cable properties later this year. Disney has even toyed with the idea and although CEO Bob Iger has since walked back a lot of those comments, a lot on Wall Street think that that's an area that the company could continue to explore. But for Warner Brothers Discovery specifically, what's so striking about this is that this combined company was formed a little over three years ago. It has a ton of debt. It actually took on a lot more debt in the process of that combination. And nowhere in this announcement did we really hear much about the declines that we've seen overall for the network side of the business and the television side of the business. So, I'm curious how this is going to play out in the public markets here and what shareholders are really going to look at when they're evaluating these two separate businesses. Clearly investors are liking it right now. Shares are up as much as around 12% earlier today. I'm seeing shares up just around 10% at this point. The transaction is expected to close by mid 2026. It seems like on the network side at least, they're going to continue to lean in on sports. There is that symbiotic relationship between the network side along with the streaming side. But overall here, the early commentary on Wall Street sort of shows how this company has been fumbling through a lot of the disruption that we've seen across the industry here. So, a lot to be determined. Again, writing was on the wall when it comes to Warner Brothers Discovery, when it comes to a lot of the other legacy players out there. Just how the market receives this though, I think it's going to be an interesting tell sign on the future of this sector.

And do we know anything about what the leadership is going to look like at these two companies or anything else about kind of what that executive presence might be?

Yeah. So Warner Brothers Discovery CEO, he is going to lead the streaming and studio side of the business. And then the CFO, he is going to become the new CEO of the network side of the business. So, both of those leaders will remain at their current posts until the separation, and then we will see that official leadership change there. So, still keeping it within the same orbit. Um, of course, we know with how these things go, things could change very, very quickly, but it's expected by mid-2026, we're going to see that official separation.

All right. Well, we'll continue to talk about it with you, Ally, as we have been for several years. It feels like now. Thank you so much for joining us. Appreciate it.

Thanks.