Warner Bros Discovery is restructuring into two separate companies—studios/streaming and cable networks.
Warner Bros. Discovery (WBD) announced a significant corporate restructuring today, revealing plans to separate into two standalone publicly traded companies by mid-2026. The move is aimed at simplifying its operations and sharpening strategic focus in a rapidly evolving media landscape.
Streaming & Studios Division
This new entity will encompass Warner Bros. Television, Warner Bros. Motion Picture Group, HBO, HBO Max, DC Studios, and other production and direct-to-consumer streaming businesses. CEO David Zaslav is expected to lead this division, which is designed to focus on content creation and global streaming growth.
Global Networks Division
The second company will manage WBD’s traditional media and linear television assets, including CNN, TNT, Discovery Channel, TNT Sports, Discovery+, and various international free-to-air networks. CFO Gunnar Wiedenfels is expected to take charge of this unit, which will also retain up to a 20% minority stake in the streaming business.
Strategic Rationale
The restructuring reverses key elements of the 2022 WarnerMedia–Discovery merger, addressing the structural mismatch between fast-growing content streaming and the declining cable TV sector. The split allows for focused leadership and clearer financial performance metrics for investors.
To support the transition, WBD has secured a $17.5 billion bridge loan to fund a tender offer and reorganize liabilities. Much of the company’s debt—estimated between $34 billion and $38 billion—will remain with the Global Networks business to enable a cleaner balance sheet for the new streaming entity.
Market Response
WBD shares rose sharply following the announcement, with investors welcoming the clarity and potential value unlocked by the split. Analysts see the move as aligning with broader industry trends toward specialization and capital discipline.
Timeline and Execution
The company expects to complete the separation by mid-2026, pending regulatory and board approvals. Transitional service agreements will be in place to maintain operational continuity during the process.