In a monumental move set to redefine its strategic direction, Warner Bros. Discovery (WBD) announced today its plans to separate into two distinct publicly traded companies by mid-2026. This major industry shakeup aims to create more focused entities: “Streaming & Studios” and “Global Networks,” allowing each to maximize its potential in a rapidly evolving media landscape. The news, which had been anticipated after internal restructuring efforts, sent WBD shares surging in pre-market trading.
The “Streaming & Studios” entity, to be led by current Warner Bros. Discovery CEO David Zaslav, will be the powerhouse behind iconic content. This division will encompass Warner Bros. Television, Warner Bros. Motion Picture Group, the highly anticipated DC Studios, HBO, and the recently rebranded HBO Max, along with their extensive film and television libraries, Warner Bros. Games, and various tours, retail, and experiences. Zaslav emphasized that this company will focus on scaling HBO Max globally, investing in world-class programming, and building on its global momentum.
Meanwhile, the “Global Networks” company will be headed by Gunnar Wiedenfels, currently WBD’s Chief Financial Officer. This entity will comprise a robust portfolio of premier entertainment, sports, and news television brands around the world, including CNN, TNT Sports in the U.S., Discovery Channel, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R). Wiedenfels stated that Global Networks will focus on “further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.”
The decision to split comes just three years after the merger of Discovery and the former WarnerMedia, a deal initially intended to create a formidable competitor in the streaming and content space. However, the combined entity faced challenges including significant debt, intense streaming competition, and declining traditional cable viewership. By separating, Warner Bros. Discovery aims to empower these iconic brands with the “sharper focus and strategic flexibility they need to compete most effectively,” as stated by David Zaslav.
This restructuring is seen as a direct response to the “cord-cutting” phenomenon, where consumers increasingly abandon traditional pay-television subscriptions in favor of streaming services. The new structure will allow the “Streaming & Studios” arm to aggressively pursue growth in the digital realm without being weighed down by the financial profile of the declining linear TV business. Conversely, “Global Networks” can concentrate on optimizing its established, cash-generating assets and exploring new opportunities in live content and digital extensions.
The separation is expected to be a tax-free transaction for U.S. federal income tax purposes and is subject to final approval by the Warner Bros. Discovery board. Both companies are expected to have well-capitalized structures and a clear path to de-leveraging, supported by significant cash flow and liquidity. Industry analysts are closely watching the move, which echoes similar restructuring efforts by other media giants like Comcast, as a potential blueprint for navigating the complex and evolving media landscape. The split is anticipated to unlock shareholder value and provide greater clarity of purpose for each new entity, allowing for more agile decision-making and tailored investment strategies.
Key Highlights:
- Warner Bros. Discovery (WBD) announced its plan to split into two separate publicly traded companies, “Streaming & Studios” and “Global Networks,” by mid-2026.
- David Zaslav will lead “Streaming & Studios” (Warner Bros. Television, Motion Picture Group, DC Studios, HBO, HBO Max, etc.), focusing on global streaming growth.
- Gunnar Wiedenfels will lead “Global Networks” (CNN, TNT Sports, Discovery Channel, Discovery+, Bleacher Report, etc.), concentrating on optimizing traditional linear and digital network assets.
- This strategic move aims to create more focused entities to better compete in the evolving media landscape, address cord-cutting, and unlock shareholder value, just three years after the initial WBD merger.