In a landmark move aimed at addressing mounting debt and navigating the rapidly evolving media landscape, Warner Bros. Discovery has announced plans to split into two independently traded companies by mid-2026. This decision marks a major strategic shift, just three years after the company was formed through the $43 billion merger of WarnerMedia and Discovery. The restructuring will divide the company’s core operations into two distinct businesses: one focused on streaming and content creation, and the other on traditional cable and global networks.
The first of the two new entities, tentatively labeled “Streaming & Studios,” will include Warner Bros. Television, Warner Bros. Motion Picture Group, HBO, HBO Max, and DC Studios. This division will handle content development and direct-to-consumer streaming operations, with David Zaslav—current CEO of Warner Bros. Discovery—expected to continue leading it. The second company, “Global Networks,” will consist of traditional cable assets such as CNN, TNT Sports in the U.S., Discovery-branded channels internationally, Bleacher Report, and the Discovery+ platform. This entity will be helmed by current Chief Financial Officer Gunnar Wiedenfels and will focus on profitability, stable cash flows, and operational efficiency.
The restructuring is being positioned as a way to unlock value, allowing each company to better target its specific market demands. While the Streaming & Studios unit will emphasize creative expansion and digital subscriber growth, the Global Networks arm will aim for operational streamlining amid the decline of linear television viewership. The company emphasized that the split will give both entities the financial and strategic autonomy needed to thrive in their respective domains.
To fund the separation and manage its $37 billion debt burden, Warner Bros. Discovery has secured a $17.5 billion bridge loan from JPMorgan. The Global Networks entity will retain a 20% stake in the Streaming & Studios company, with the option to divest that stake later to further reduce debt. Executives also stressed that the spin-off will be structured to qualify as a tax-free transaction under U.S. law.
This move aligns with industry trends, as major media companies re-evaluate their business models. Comcast, for instance, recently announced a similar spin-off of NBCUniversal’s cable networks. Analysts have welcomed Warner Bros. Discovery’s decision, noting that it could enhance shareholder value and improve stock performance. The company’s stock surged nearly 13% in pre-market trading following the announcement, reflecting strong investor confidence in the strategy.
Warner Bros. Discovery aims to complete the transaction by mid-2026, pending board approval and regulatory clearance. The transition will be carefully managed, with Zaslav and Wiedenfels continuing in their current roles until the reorganization is finalized. This bold move, while effectively reversing part of the 2022 merger, represents a calculated attempt to future-proof the company and adapt more flexibly to the changing media environment.
