WBD Split: Warner Bros. & Discovery Separate
- Discovery (WBD) revealed plans Monday to divide the media giant into two distinct public companies by 2026.
- 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.
- David Zaslav will lead the streaming and studios company, while Gunnar Wiedenfels will take the helm as CEO of the global networks business.
Warner Bros. Discovery (WBD) moves decisively, splitting into two public companies by mid-2026, a move aimed at navigating the rapidly changing media landscape. the primarykeyword is the WBD split, which will create a streaming adn studios division, helmed by CEO david Zaslav, and a global networks division under CFO Gunnar Wiedenfels.
This strategic maneuver reflects the industry’s shift away from conventional cable,a trend highlighted by News Directory 3. The secondarykeyword is media landscape, with the separation designed to offer each entity strategic flexibility, allowing them to compete more effectively. WBD aims to optimize its strengths in streaming, studios, and global networks with this split.
What specific strategies will these two new companies adopt? Discover what’s next for Warner Bros. Discovery.
Warner Bros. Discovery to Split into Two Companies by 2026
Updated June 11, 2025
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.