Warner Bros. Discovery has revealed its intention to divide into two distinct companies, separating its streaming and studio operations from its linear television segment. This separation is projected to be finalized by mid-2026, aimed at enhancing the potential of the company’s diverse portfolio.
Under this new structure, the “Streaming and Studios” entity will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with their extensive film and television libraries. The second entity, termed “Global Networks,” will manage entertainment, sports, and news brands, encompassing CNN, Bleacher Report, the Discovery Plus streaming service, TNT Sports in the United States, and Discovery channels in Europe.
Previously, in December, the company indicated plans for a business restructuring into two operational divisions, with WBD serving as the overarching parent company. This latest announcement further clarifies those initial intentions, though it remains silent on future leadership positions within WBD post-separation.
WBD CEO David Zaslav commented on the company’s legacy, stating, “The cultural impact of this great company and the compelling stories it has shared for over a century have moved countless individuals around the globe. It is a legacy we are eager to carry forward into the next chapter of our esteemed history. By transitioning to two focused and optimized companies, we are equipping these iconic brands with the clarity and strategic agility needed to thrive in today’s changing media environment.”
According to an internal memo obtained by Wall Street Journal reporter Joe Flint, Zaslav acknowledged that the integration process following the 2022 merger of WarnerMedia and Discovery has been “challenging at times,” but highlighted the company’s notable progress in reclaiming its leadership position in the film and television industry.
Details regarding the final names of the two new companies have yet to be disclosed, leaving unclear which entity will retain the Warner Bros. branding. Zaslav is set to lead the Streaming and Studios division as President and CEO, while WBD CFO Gunnar Wiedenfels will assume the same roles at Global Networks. Both executives will maintain their current responsibilities at WBD up until the separation is completed. Global Networks will acquire a 20 percent stake in the new Streaming and Studios company.
The Financial Times reported in July 2024 that Zaslav had been contemplating the creation of a new company to separate WBD’s streaming operations from the mounting debts associated with its legacy television networks. The decision to split into two separate entities appears to be WBD’s strategy for addressing these financial challenges. Additionally, the company plans to secure a $17.5 billion short-term loan to reduce part of its $37 billion debt before the split. The allocation of debt across the two new companies has not been clarified, but an investor call indicated that the “majority” of the debt would be assigned to Global Networks.
