Warner Bros. Discovery to split into two companies, separating streaming from cable networks

Warner Bros. Discovery (WBD) announced that it will split into two separate entities — one focused on its studios and streaming platforms, and the other on its declining cable television networks — in a major restructuring move aimed at thriving in the modern streaming landscape.

The decision marks yet another chapter in the unraveling of decades-long media consolidation, which once brought together content creation, distribution, and telecommunications under massive conglomerates. The company said the split will allow its streaming business — home to brands like HBO and Max — to scale more effectively without being weighed down by its shrinking cable portfolio, which includes CNN and other traditional channels.

Post-breakup, CEO David Zaslav will lead the newly formed studios and streaming company, while CFO Gunnar Wiedenfels will take charge of the global networks unit.

"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 statement.

WBD also announced that it has launched tender offers to restructure its existing debt, supported by a $17.5 billion bridge loan from J.P. Morgan. The company said the loan will be refinanced before the split is finalised.

The split — structured as a tax-free transaction — is expected to be completed by mid-2026.

As part of the restructuring, the global networks business will retain up to a 20% stake in the new streaming and studios entity — a stake WBD plans to eventually monetize to further reduce debt.