Warner Bros. Splits Into Two Companies

In a move that will reshape the media landscape yet again, Warner Bros. Discovery (WBD) announced on Monday that it will split into two separate publicly traded companies—one focused on streaming and film production, the other on television networks like CNN and Discovery.

The breakup, set to be completed by mid-2026, is WBD’s response to shifting industry winds and increasing investor pressure. With streaming on the rise and traditional cable revenues shrinking, CEO David Zaslav is carving out what he hopes will be a cleaner, more investable path for the company’s streaming success story: HBO Max.

Zaslav will helm the new “Streaming & Studios” entity, which will encompass HBO Max and the Warner Bros. film studio. Meanwhile, CFO Gunnar Wiedenfels will lead the second entity, dubbed “Global Networks,” which will include CNN, TNT, TBS, Discovery, and other television networks. Each will be free to pursue growth in a sharply focused sector without carrying the baggage of the other.

Despite the upbeat framing, this split is not born of strength alone. WBD’s stock has plunged nearly 50% since the 2022 merger between Discovery and Time Warner.

The company still holds $37 billion in debt, much of which will be retained by the Global Networks company. Just last month, S&P Global Ratings downgraded WBD’s stock to “junk” status, citing continued losses from its legacy TV operations.

But Monday's market reaction tells a different story: WBD shares spiked over 10% following the announcement. Investors, it seems, are excited by the prospect of unbundling the future-facing streaming unit from the declining linear TV business.

WBD’s strategy mirrors broader trends. Comcast is currently pursuing its own media split, albeit as a cable asset spinoff rather than a full-blown separation. The clear message: legacy media companies are racing to isolate their streaming gems from their cable anchors before it’s too late.

Even so, it’s not a clean break. While “Streaming & Studios” will claim the lion’s share of digital innovation (including the globally expanding HBO Max), Global Networks isn’t walking away from streaming altogether. It will retain control of Discovery+, Bleacher Report, and the much-anticipated CNN streaming relaunch, scheduled for later this year.

Zaslav emphasized that this is not a pivot but a “continuation” of WBD’s strategy to dominate in both streaming and global network programming. The reality, however, is that this split marks a symbolic end to the 2022 mega-merger that brought Discovery and Time Warner together under one roof. What began as a media powerhouse has now fractured under the weight of transformation, competition, and massive debt.