Warner Bros. Discovery announced plans to split into two separate publicly traded companies one focused on streaming and content creation, and the other on traditional television.
The company said the restructuring is aimed at giving each division more flexibility and focus in today’s rapidly changing media industry. The split is expected to be completed by mid-2026, subject to approvals and closing conditions.
David Zaslav, CEO of Warner Bros. Discovery, will lead the streaming and content business, which will include HBO, HBO Max, Warner Bros. TV and film studios, and a division focused on gaming and experiences. The unit will center its efforts on expanding the HBO Max platform and developing high-quality programming for a premium audience.
Meanwhile, Gunnar Wiedenfels, the company’s current CFO known for aggressive cost-cutting, will head the TV-focused company. This division will include cable and broadcast networks, global TV channels, and digital properties such as Discovery+, Bleacher Report, and CNN’s streaming services.
Notably, nearly $38 billion in debt will be assigned to the TV business. This move could make the streaming company more agile and attractive to investors, while the traditional TV arm bears the financial weight.
Zaslav stated, “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.”
The decision comes shortly after Comcast’s similar restructuring strategy. Comcast is currently spinning off its cable networks into a new entity called Versant, while retaining its broadcast and streaming assets under NBC. Warner Bros. Discovery’s strategy appears to be influenced by this approach, signaling a wider industry trend.
Furthermore, Warner Bros. Discovery has faced significant setbacks in recent years. Since its formation a result of the AT&T WarnerMedia and Discovery merger the company has struggled with shifting streaming strategies and underinvesting in cable networks like TNT and TBS. It recently lost the NBA broadcasting rights, one of its most valuable sports properties, and wrote down the value of many cable assets.
Despite these issues, Warner is showing some signs of momentum. Its streaming service, Max, has gained traction with popular shows like The White Lotus and The Pitt. The company has also focused on targeting premium content consumers, rather than trying to appeal to mass audiences.
Additionally, Warner has secured new distribution deals with cable and satellite providers on what insiders describe as favorable terms a small win amid the loss of NBA rights.
This split could spark further consolidation in the media sector. Industry watchers are keeping a close eye on Paramount Global, which is under pressure and may be forced to make new cuts if its proposed deal with Skydance Media falls through.
On an investor call, Warner executives hinted that the two new companies may continue working closely together. For instance, advertising sales may span both businesses, and sports content, though formally housed under the TV company, may still be streamed on HBO Max at least for now.
Wiedenfels added, “The U.S. sports rights will reside at the global networks, and its management team will determine how best to monetize the streaming and digital rights over time.”
The split marks a significant turning point for Warner Bros. Discovery and could redefine how large media companies structure themselves in the face of digital disruption. Whether the split will strengthen Warner’s business or expose deeper weaknesses remains to be seen.