In a landmark move reshaping the media and entertainment landscape, Warner Bros. Discovery has announced plans to split into two separate publicly traded companies, separating its Streaming & Studios division from its Global Networks arm.
The decision, approved by the board and expected to be completed by mid-2026, marks one of the most significant corporate restructurings since the original WarnerMedia–Discovery merger in 2022. According to the company, the split is intended to allow each entity to pursue a more focused strategy amid rapidly changing industry dynamics.
🎬 Streaming & Studios
The new Streaming & Studios company will include major content powerhouses such as Warner Bros. Pictures, Warner Bros. Television, DC Studios, HBO, and Max. It will also retain rights to the expansive Warner Bros. content library. CEO David Zaslav will remain at the helm of this content-centric unit.
This company will focus on producing and distributing premium content across theaters and streaming platforms, with an eye on growth and global scale. Analysts expect this arm to compete more aggressively with Netflix, Disney+, and Amazon Prime Video in the global streaming race.
🌐 Global Networks
The second company, Global Networks, will comprise CNN, TNT Sports, Discovery Channel, Bleacher Report, and a host of international free-to-air and cable networks. Current CFO Gunnar Wiedenfels will take over as CEO of this business.
This unit will focus on linear television, live sports, and global news distribution. With cord-cutting on the rise, Global Networks aims to optimize operations, maintain cash flow, and explore new monetization strategies for its established channels.
Strategic Intent
According to the company, the split is designed to unlock shareholder value and provide clearer strategic direction for both companies. “We are creating two strong, focused companies,” Zaslav said in a statement. “Each will be better positioned to serve customers, invest in innovation, and compete in today’s dynamic environment.”
The transaction is expected to be tax-free and includes a $17.5 billion financing package led by JPMorgan to support the transition. Global Networks is also set to retain a minority stake in Streaming & Studios, ensuring a continued link between the two businesses.
Market Reaction
News of the split sent Warner Bros. Discovery shares soaring, with pre-market trading showing a surge of 6–9%. Investors praised the move as a much-needed realignment, especially amid declining cable revenues and the company’s substantial debt load.
The restructuring echoes similar strategies being considered or executed by other major media companies, including Disney and Comcast, as legacy media shifts to prioritize digital-first operations.
What’s Next?
Warner Bros. Discovery says more details about leadership structures, brand strategy, and operational timelines will be unveiled in the coming months. The industry is watching closely, as this decision could mark the beginning of a new chapter in how entertainment conglomerates structure themselves for the future.
