Warner Bros. Discovery has announced a planned division into two separate publicly traded companies, confirming that Warner Bros. will take ownership of the studio and streaming businesses while Discovery Global will house news, sports, and traditional network brands.
This strategic split, expected to close by mid‑2026, reverses the 2022 merger between WarnerMedia and Discovery amid mounting pressure to adapt to the industry’s shift from cable to streaming.
Under the new structure, the Warner Bros. entity will oversee HBO Max, Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, and even Warner Bros. gaming units.
The Discovery Global entity will take charge of cable and global networks, including CNN, TNT Sports in the U.S., Discovery’s free‑to‑air channels, the Discovery+ streaming platform, and Bleacher Report.
The move is intended to enhance strategic focus and unlock operational flexibility, with Warner Bros. focused on content creation and streaming growth, and Discovery Global leveraging its strong cash‑flow brands in news and sports to service the company’s heavy debt load.
CEO David Zaslav will lead the Warner Bros. streaming and studios company, while current CFO Gunnar Wiedenfels will become CEO of Discovery Global.
Reports indicate the split is structured as a tax‑free transaction, designed to separate the high‑growth digital operations from the declining but cash‑generative linear networks segment.
The networks business marked by declining pay‑TV subscriptions and diminished advertising revenue is being viewed as a drag on the broader business and a key reason for the reorganization.
Analysts note the separation aligns Warner Bros. Discovery with similar moves in the industry; Comcast is spinning off its cable networks into a new entity called Versant, and Lionsgate has separated its Starz unit from the studio business.
The split could also help clarify valuation for investors: Warner Bros.’ studio and streaming assets prized for growth potential, and Discovery Global positioned as a cash engine from established brands.
This strategic uncoupling follows a turbulent period marked by billions in asset write‑downs and shareholder dissatisfaction. Warner Bros. Discovery’s stock had declined sharply from its post‑merger highs, and rating agencies downgraded its credit due to heightened leverage. The split is expected to allow the companies to chart more streamlined paths, manage debt more effectively, and pursue tailored investor strategies.
In summary, Warner Bros. will retain its entertainment IP and streaming operations, while Discovery Global will serve as the hub for its news and sports networks reframing the company into two focused entities designed to thrive in evolving media markets.
Written By Ian Maleve
