Warner Bros. Discovery (WBD) announced plans on Monday to separate its business into two independently traded companies, a move aimed at sharpening strategic focus amid ongoing shifts in the media industry.
The split, expected to be completed by mid-2026, will divide the company’s streaming and studio operations from its traditional cable television networks.
The new structure will place WBD’s film and television production units—including HBO Max, Warner Bros. Studios, and the DC Comics franchise—under the umbrella of a company tentatively referred to as “Streaming & Studios.” This entity will be led by current CEO David Zaslav.
The second company, to be known as “Global Networks,” will house legacy television brands such as CNN, TNT, Discovery Channel, and the Food Network. It will also take on a significant portion of WBD’s current debt and will be led by Chief Financial Officer Gunnar Wiedenfels.
Zaslav stated the split is designed to provide “greater strategic flexibility and focus” for each business line, which face different market challenges and opportunities. The restructuring echoes similar decisions by other major players in the industry. Last year, Comcast announced a spinoff of its cable networks to form a separate entity named Versant.
The move comes at a time when cable TV continues to decline in relevance as audiences increasingly shift to streaming services and social media platforms for content. While WBD’s networks remain profitable, they are widely seen as operating in a contracting market. According to S&P Global Ratings, declining revenues and cash flows from linear TV operations recently contributed to a downgrade of WBD’s credit rating to below investment grade.
Despite these headwinds, both new entities are expected to retain valuable assets. The “Global Networks” group will still include streaming platforms like Discovery+ and Bleacher Report, while CNN is set to launch a new streaming service later this year. The “Streaming & Studios” arm, meanwhile, is expected to benefit from investor interest in direct-to-consumer media properties.
The announcement was met with a positive response from investors, with WBD’s stock rising over 10% on Monday. However, the company’s share price remains down roughly 60% since Zaslav took the helm following the 2022 merger of Discovery and the former Time Warner.
In a call with investors, Zaslav acknowledged the split could also create space for further industry consolidation and deal-making. Questions remain about how the company’s remaining $37 billion in debt will be allocated and how the two entities will handle future distribution and licensing arrangements.
Though some analysts have expressed skepticism, others see the restructuring as a necessary step to unlock the underlying value of WBD’s media assets. Bank of America analysts recently noted the company was “not working as a publicly traded entity” and suggested bold changes were needed.
With input from NBC News, CNN, and Business Insider.
