Warner Bros. Discovery (WBD), the media conglomerate known for its vast portfolio of cable channels and streaming services, announced on Monday, June 9, 2025, a major corporate restructuring plan: the company will split into two distinct publicly traded entities by the middle of 2026. This strategic move reflects the evolving media landscape as consumer preferences shift from traditional cable TV to streaming platforms.
The split will create two companies with sharply defined focuses. The first, dubbed Streaming & Studios, will encompass Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with their extensive film and television libraries. This entity will be led by David Zaslav, the current president and CEO of WBD, who will continue in his role overseeing the streaming and studio assets.
The second company, Global Networks, will house WBD's traditional cable and broadcast assets, including CNN, TNT Sports in the U.S., Discovery channels, and their digital products like Discovery+ and Bleacher Report. Gunnar Wiedenfels, WBD's current chief financial officer, will become president and CEO of this new entity, maintaining his leadership role through the transition.
The separation is designed to be tax-free and is expected to be finalized by mid-2026, pending customary closing conditions and approvals. To support this restructuring, WBD announced it is securing $17.5 billion in financing from J.P. Morgan, strengthening the company’s capital structure during this pivotal transformation.
According to Zaslav, this split will empower both companies to operate with "sharper focus and strategic flexibility," allowing them to compete more effectively in the rapidly changing media environment. "By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape," he said in a statement.
Wiedenfels echoed this sentiment, emphasizing the financial and operational benefits of the separation. "This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value," he explained. He further highlighted the Global Networks company’s plans to innovate and collaborate with distribution partners to maximize network assets and free cash flow, balancing both linear and streaming viewer needs worldwide.
The split follows a period of significant challenges for WBD, which was formed in 2022 through the merger of Warner Media and Discovery. The merger combined Warner Media's portfolio—including HBO, TNT Sports, and Warner Bros. studios—with Discovery's extensive cable network group. While the merger created a media giant, it also left the company with a heavy debt load and operational complexities.
WBD has been actively managing its debt, repaying $19 billion so far, but still carrying nearly $34 billion in net debt at the end of the first quarter of 2025. In May, S&P Global Ratings downgraded WBD's credit rating to junk status, citing ongoing revenue and cash flow declines in the traditional TV business as a key factor.
Despite these challenges, the traditional TV networks remain profitable and generate substantial cash flow, which has historically been used to fund the company’s streaming ambitions. However, the streaming platform, HBO Max—which has recently reverted to its original name after a brief rebranding—has struggled to convert this content advantage into sustained subscriber growth and profitability. Zaslav acknowledged during a recent investor call that sports content has not been "a real driver" for the streaming service, underscoring the challenges of monetizing live sports in the streaming era.
The decision to split the company into Streaming & Studios and Global Networks mirrors similar moves by other media giants. Comcast, for example, is currently spinning off its NBCUniversal cable networks into a separate publicly traded company called Versant, while Disney has previously considered divesting its linear TV assets, though it has since cooled on that idea.
Industry analysts see these moves as responses to the broader trend of cord-cutting, where consumers increasingly abandon traditional pay-TV bundles in favor of streaming options. By separating legacy cable assets from streaming businesses, companies aim to enhance strategic flexibility, attract investors aligned with each business’s growth prospects, and pursue targeted investments more aggressively.
WBD’s Global Networks company will continue to leverage its broad reach, currently serving 1.1 billion unique viewers in 68 languages across 200 countries and territories. The company intends to focus on expanding live content offerings in sports and news, as well as growing digital extensions of its network brands, including Discovery+ and CNN’s new streaming services.
Meanwhile, Streaming & Studios will prioritize scaling HBO Max globally, which is now available in 77 markets, with plans for further international expansion in 2026. The company will invest in high-quality programming and leverage its legendary library of intellectual property to drive sustainable revenue, profit, and free cash flow growth.
WBD’s board of directors supports the split, viewing it as a strategy to unlock shareholder value and better position the company’s assets for future success. Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors, said, "We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders."
The announcement was met with a positive market reaction, with Warner Bros. Discovery shares rising roughly 9% during Monday morning trading, recovering from a year-to-date decline of about 7% prior to the news.
As the media industry continues to navigate a period of "generational disruption," this split marks a significant milestone for Warner Bros. Discovery, enabling both companies to sharpen their competitive edges and adapt to the distinct challenges and opportunities of the streaming and traditional TV markets.
