NEW YORK—Warner Bros. Discovery today unveiled its plans to separate the company into two publicly traded companies—one focused on its streaming services and the second on its cable business, confirming plans it announced last December.
The “Streaming & Studios” company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, as well as their film and television libraries. Global Networks will include entertainment, sports and news television brands worldwide, including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as Discovery+ streaming service and Bleacher Report (B/R).
The separation is expected to be completed by mid-2026, subject to closing and other conditions, WBD said.
David Zaslav, president and CEO of Warner Bros. Discovery, will serve as president and CEO of Streaming & Studios. Gunnar Wiedenfels, chief financial officer of Warner Bros. Discovery, will serve as president and CEO of Global Networks. Both will continue in their present roles at WBD until the separation. The company also announced that it is borrowing $17.5 billion from J.P. Morgan to finance the restructuring.
“The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world,” Zaslav said. “It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history. 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 to compete most effectively in today's evolving media landscape.”
Added Weidenfels: “This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value. At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow."
"We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders," added Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. "This announcement reflects the Board's ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.“
“The merger of Warner Bros. and Discovery three years ago has had mixed results with many analysts lamenting the fact that a high-profile studio wasn't better positioned to exploit its high-value legacy content. High debt, a challenging streaming market and a continued increase in cord-cutting have had a negative impact on the company’s bottom line. CNN announced earlier this year that it would cut 6% of its workforce. And in a recent publicized misstep, the company botched its rebranding of HBO Max to Max, reversing its decision last month to return to the HBO Max moniker.
This was reflected in today’s announcement when the company noted that the split will allow WBD to “to be faster and more aggressive in pursuing opportunities that strengthen their competitive positions,” and form “world-class management teams focused on creating greater strategic flexibility and focus so that each business can invest in and pursue its operational and financial goals.”
