Warner Bros. Discovery announced on Monday that it will split into two separate companies, dividing its cable networks, such as CNN and TNT Sports, from its popular streaming and studio brands, including HBO Max and Warner Bros. Television.
The company states that the split will be completed by mid-2026. Current CEO David Zaslav will oversee the new Streaming & Studios division.
Gunnar Wiedenfels, the head of finance, will lead the cable-focused business, which will be known as Global Networks.
"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," Zaslav said in a statement.
The latest decision rolls back key aspects of the 2022 merger between WarnerMedia and Discovery.
Since the merger, the company's stock has dropped by over 60%, primarily due to losses in cable TV viewership as people shift to streaming, according to CBS News.
The Streaming & Studios branch will manage HBO, HBO Max, Warner Bros. Television, and the film and DC Comics production units.
It's already seeing growth, with HBO Max available in 77 markets, and a goal of adding 150 million subscribers by 2026.
Warner Bros. Plans to Split Streaming, Cable TV Businesses.
— JUNK BOND ANALYST (@junkbondanalyst) June 9, 2025
The “nuclear option” that Zaslav swore up and down would never happen. The high yield market is ready for the next fallen angel. $WBD pic.twitter.com/iyzxglAHSx
Warner Bros. Discovery Revenue Drops 9% Despite Streaming Growth
The Global Networks division will continue to operate major brands, including CNN, TNT Sports, and the Discovery Channel, as well as digital platforms such as Discovery+ and Bleacher Report.
Despite streaming gains, Warner Bros. Discovery has been experiencing declining revenue. In the first quarter of this year, total revenue decreased 9% to $9 billion, while its studio division experienced an 18% decline compared to the same period last year.
Last week, shareholders rejected Zaslav's $51.9 million pay package in a nonbinding vote. That comes as CEO pay continues to rise across the industry, even as companies face financial struggles.
Financial expert Adam Crisafulli noted the challenge ahead: cable TV still generates revenue, but has limited room for growth. That means one part of the new company could do well, while the other may not.
The plan still needs final approval from Warner Bros. Discovery's board of directors.
According to AP News, shares of Warner Bros. Discovery rose 11% following the news. The company is currently valued at $24.3 billion.
The split follows a larger trend. Other media giants, such as Comcast and Paramount Global, are also reshaping their businesses to keep pace with rapidly changing viewer habits and growing competition from services like Netflix, Disney+, and Amazon Prime Video.
Originally published on vcpost.com
