Warner Bros. Discovery (WBD) will officially split into two separate companies by mid-2026, one of the most radical restructurings in its history.
With a goal to separate the high-growth digital business from the weight of traditional TV, one company will handle streaming and studios; the other, legacy television.
The restructuring will see Warner Bros. Television, DC Studios, HBO, HBO Max, and the company’s extensive film and TV archives form a new entity focused on streaming and content production.
Meanwhile, CNN, TNT Sports, Discovery Channel, and the rest of the company’s linear television brands, across the U.S. and Europe, will sit under a second company called Global Networks.
The announcement comes as WBD tries to turn around years of financial stress. Since its 2022 merger with WarnerMedia, the company has faced the dual challenge of high costs of streaming and falling cable revenues.
CEO David Zaslav, who will lead the new Streaming and Studios company, stated in an internal memo: “While the work has been challenging at times, we’ve made strong progress in returning our film and television studios to industry leadership.”
WBD is borrowing $17.5 billion through a short-term loan, aiming to buy back a portion of its $37 billion debt before the breakup. The precise allocation of debt between the two new companies remains unclear, but WBD has indicated the majority will be assigned to Global Networks.
This financial reshuffle has implications well beyond Warner Bros. Analysts are already speculating about possible mergers or partnerships.
With Global Networks keeping a 20% stake in the Streaming and Studios business, and no final names announced for the spin-offs, it’s not out of the question that WBD could become a player in the next big media consolidation wave.
If Zaslav’s strategy succeeds, the split could shield the fast-growing streaming business from the financial drag of traditional cable TV. But if it doesn’t, WBD could find itself with one company weighed down by debt and another struggling to find direction in the competitive streaming market.
Zaslav said, “By operating as two distinct and optimised 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.”
There’s still no word on whether either of the new companies will keep the “Warner Bros.” name. CFO Gunnar Wiedenfels is set to lead Global Networks after the split, while both Zaslav and Wiedenfels will remain in their current roles until the separation is finalised.
