Warner Bros. Discovery to Split into Two Companies by 2026

Updated‌ June 11, 2025
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Warner Bros. Discovery (WBD) revealed plans Monday to divide the media giant into two distinct⁢ public companies by⁤ 2026. This move marks the ‌latest major shift as‍ consumers increasingly transition from traditional cable⁤ to streaming services.

The⁣ company will separate into⁤ a streaming and studios division,encompassing ‌movie properties​ and ⁤HBO Max,and a global networks ⁣division,which includes CNN,TNT Sports,and Discovery,among other assets. The Warner Bros. ‍Discovery split ⁤reflects an industry-wide trend.

David Zaslav will lead the streaming and studios company, while Gunnar Wiedenfels ‍will take the helm as CEO of ‌the⁤ global⁢ networks business.

“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,” Zaslav said in a release.

The‍ announcement confirms earlier reports that WBD was considering such a move. The company had previously announced restructuring efforts that many viewed as a precursor to a full separation.

The ‌move by Warner ​Bros. ⁣Discovery to focus on ‍streaming and studios mirrors similar strategies by ⁢other media giants adapting ⁢to the evolving ⁣media landscape.

Comcast’s NBCUniversal is also spinning off its​ cable networks into a new publicly traded company called⁤ Versant.​ NBCUniversal will retain control⁣ of Peacock,NBC’s broadcast⁣ network,and its film ​business.

WBD’s portfolio⁤ of cable TV networks was formed⁣ by the 2022 ⁢merger between Warner bros. ‌and‌ Discovery. The merger combined channels⁢ like CNN, TBS, and TNT with Discovery, TLC, and ⁢HGTV.

These strategic shifts come as both Warner bros. Discovery and Comcast grapple ⁣with declining traditional pay-TV subscriptions as viewers opt for streaming services.

Wiedenfels‌ noted that‌ free ⁤cash flow from traditional TV has been used to build the streaming platform. Tho, content hasn’t‌ translated for the Max platform,​ which is being renamed HBO Max and will focus on quality over quantity.

Zaslav said sports hadn’t been “a real driver” for⁢ the streaming platform.

Executives emphasized​ that‌ each company would be “free and‌ clear from a⁢ transaction perspective.” While the​ split is tax-free,executives ⁤would be willing to forgo that⁢ benefit to do⁣ the right ⁤deal,according to a person familiar with the matter.

Zaslav has advocated for deregulation to encourage further consolidation ​in‍ the media ⁤industry,which he describes as undergoing “generational disruption.”

NBCUniversal’s cable‍ network separation‍ aims to‍ provide greater ⁤flexibility ‍for investment and potential mergers.Versant CEO Mark Lazarus has‌ stated the company intends to be acquisitive.

the current Warner Bros. Discovery resulted ⁤from the 2022 merger ‌of Warner Media and Discovery.‍ The​ company has since been working to reduce the debt ⁣from that merger.

While the company has repaid $19 billion in debt, it‍ still had just below $34 billion in net debt at the end​ of the first quarter, Wiedenfels ⁣said.

Last month, S&P Global Ratings lowered WBD’s credit‌ rating to junk status, citing declining​ revenue and cash flow ​in the traditional TV business.

The ⁤debt load will be divided between the​ two ​companies after the split.

“Its safe to assume that the​ majority ​of the ‍debt is ‍going to live‍ with global networks and a smaller portion, ‍but not insignificant portion on streaming ⁣and studios ‌as well,” said Wiedenfels.

Both companies are expected to ​have strong liquidity, particularly the global networks business, ⁣which is ⁢projected‍ to generate significant‌ free cash flow for ​further‌ debt repayment.

What’s next

The separation is expected​ to be completed by‍ mid-2026. The new structure aims to allow⁤ each company to better navigate the evolving media landscape and capitalize‌ on its respective ‍strengths in ⁤streaming, studios, and global networks.