Warner Bros Discovery announced plans to split into two publicly traded companies, a move designed to separate its thriving streaming and studios business from its declining cable networks. The restructuring aims to give each arm more strategic flexibility as the company adapts to seismic changes in the media landscape.
The new streaming and studios company will include key assets like Warner Bros, DC Studios, and HBO Max, while the cable-focused unit will house CNN, TNT Sports, and Bleacher Report. The networks division will also hold up to a 20% stake in the streaming and studios operation.
Warner Bros Discovery CEO David Zaslav will lead the streaming and studios group, while CFO Gunnar Wiedenfels will become CEO of the networks business. The company said the split will be structured as a tax-free transaction and is expected to be completed by mid-2026.
“By operating as two distinct and optimized companies, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively,” Zaslav said in a statement.
The decision unwinds much of the 2022 merger that created the media giant, reflecting the intense pressure on cable networks as more viewers shift to streaming. Warner Bros Discovery shares rose 7% on Monday after the announcement, though the stock remains down nearly 60% since the merger, battered by subscriber losses, heavy debt, and streaming competition.
