Good morning. Three years after its formation through a merger, Warner Bros. Discovery is splitting up, and its CFO is stepping into his first CEO role.
The media and entertainment giant announced on Monday that it will separate into two publicly traded companies through a tax-free transaction. Gunnar Wiedenfels, CFO since 2022, will become CEO of global networks, the new company that will include cable channel businesses CNN, TNT, TBS, Discovery, and more.
David Zaslav, president and CEO of Warner Bros. Discovery (No. 114 on the Fortune 500), will lead the streaming and studios company, which will oversee movie properties and the HBO Max streaming service. Both Wiedenfels and Zaslav will remain in their current roles until the split, expected by mid-2026.
“By operating as two distinct and optimized companies, we’re giving these iconic brands the focus and flexibility they need to compete in today’s evolving media landscape,” Zaslav said in a statement.
As of Q1 2025, Warner Bros. Discovery’s debt is about $37.4 billion. A $17.5 billion bridge loan from JPMorgan will help refinance existing debt ahead of the split. Wiedenfels will oversee a large portion of this debt as CEO of global networks. “It’s safe to assume that the majority of the debt is going to live with global networks and a smaller—but not insignificant—portion with streaming and studios,” he told investors on Monday during a call.
Once the separation is complete, neither company will face restrictions on pursuing new transactions. Global networks will retain up to a 20% stake in streaming and studios.
“We have long viewed exploring strategic alternatives, including today’s announced spin, as the best way to unlock the company’s significant unrecognized value,” wrote Jessica Reif Ehrlich, a Bank of America Securities research analyst, in a Monday note. BofA Securities maintains a buy rating and a $14 price target for the stock.
From CFO to CEO
Before the April 2022 merger that created Warner Bros. Discovery, Wiedenfels was CFO at Discovery, Inc., joining in 2017 after serving as CFO of ProSiebenSat.1 Media in Germany.
Zaslav referred to him as “hugely talented” on Monday’s call, noting his broad and diverse skill set and significant impact both financially and strategically. Wiedenfels thanked Zaslav and the board for their confidence in him.
I asked Scott Simmons, co-managing partner at executive search firm Crist Kolder Associates, what companies look for in leadership during spinoffs. “The most important requirements for success in a spinoff are the ability to stand up functions and build strong teams,” he said. “Executives at spinoffs are focused on establishing a new identity for the company.” He also noted that Wiedenfels’ move from CFO to CEO reflects a broader trend. “CFOs continue to evolve into broad-based operating leaders, far from the ‘bean counter’ image of the past,” he said.
Wiedenfels appears ready for the challenge. “I truly cannot wait to get started, and I’m as excited as ever to hit the ground running,” he said on the call.
Sheryl Estrada
sheryl.estrada@fortune.com
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Leaderboard
Fortune 500 Power Moves
Naveen Chopra, EVP and CFO of Paramount Global (No. 147) is departing to become CFO of Roblox Corporation, effective June 30. Chopra joined Paramount in August 2020. Andrew Warren, currently strategic advisor to the Office of the CEO and former CFO of Discovery Communications, will assume the additional role of EVP and interim CFO at Paramount. Warren also served as CFO of STX Entertainment and the NBCU Television Group.
Daniel Cunha was appointed CFO of Avis Budget Group (No. 360), effective July 1. Cunha will succeed Izzy Martins, who will be leaving the company on June 30 to pursue another opportunity. Cunha joins ABG from Orion Services Group, a private equity-owned commercial field services company, where he served as CFO for the past year. Before that, he was the CFO of Ocean Spray and Heinz North America.
Every Friday morning, the weekly Fortune 500 Power Moves column tracks Fortune 500 company C-suite shifts—see the most recent edition.
Big Deal
The PwC report, “The Fearless Future: 2025 Global AI Jobs Barometer,” finds that AI has the potential to increase people’s value in the workforce—even in roles that are highly automatable. To assess AI’s worldwide impact on jobs, skills, wages, and productivity, PwC analyzed nearly a billion job postings across six continents.
For example, workers with AI skills now earn a 56% wage premium—more than double the 25% premium seen last year, according to the report. This pay boost is evident across all industries and is especially notable for roles requiring skills like prompt engineering. PwC’s analysis found that, within the same occupation, employees with AI skills consistently earn much higher wages than those without.
Going deeper
Chipotle CEO Scott Boatwright said during Fortune’s COO summit on Monday in Scottsdale, Ariz. that the fast-casual chain is expanding at an “exponential rate,” with plans to open more than 300 new locations this year. Key to making the growth happen is new AI technology, like its hiring platform, “Ava Cado,” Boatwright said. “We will open a new Chipotle restaurant this year almost every 24 hours,” he said. You can read more here.
Overheard
“A vibrant AI sector will not emerge from a flagship GPT-X, but from an interdependent network of local tools, standards, infrastructure, and governance.”
—Nathan Benaich, founder of Air Street Capital, writes in a new Fortune opinion piece, titled “‘Sovereign AI’ is political branding. The reality is closer to digital colonialism.”
