In a significant move that was hinted at six months ago, Warner Bros. Discovery is set to divide its operations into two distinct entities. This strategic decision aims to enhance focus and adaptability in the competitive media landscape. The first entity, labeled WBD Streaming & Studios, will encompass renowned brands such as Warner Bros. Pictures, HBO, and Max/HBO Max, among others. The second entity, named WBD Global Networks, will include major networks like CNN, TNT, and TBS, primarily focusing on linear television businesses that have faced declining revenues and profitability.
According to WBD CEO David Zaslav, this split will provide each company with “sharper focus and strategic flexibility,” essential for competing effectively in today’s rapidly evolving media landscape. The separation is anticipated to be finalized by mid-2026 and is designed to open the door to potential mergers and acquisitions (M&A) scenarios in the future.
David Zaslav will lead the newly formed WBD Streaming & Studios, while the WBD Global Networks will be headed by Gunnar Wiedenfels, who currently serves as the CFO of Warner Bros. Discovery. A significant financial aspect of this split is that the majority of WBD’s substantial debt—approximately $34 billion of net debt as reported at the end of the first quarter of 2025—will be allocated to the TV networks spin-off, as stated by company executives.
Following the corporate split, each entity will have a distinct focus and operational strategy. WBD Streaming & Studios will likely prioritize content creation and distribution through streaming platforms, aligning with the growing trend towards digital consumption. Conversely, WBD Global Networks will concentrate on revitalizing its linear TV offerings and exploring new revenue streams amidst ongoing challenges.
To provide investors with a clearer understanding of the upcoming changes, WBD presented a detailed slide illustrating the anticipated structure of the two companies post-split. This visual representation highlights the strategic direction and operational focus each entity will adopt moving forward.
In summary, Warner Bros. Discovery's decision to split into WBD Streaming & Studios and WBD Global Networks reflects a proactive approach to navigating the challenges of the modern media environment. With dedicated leadership and a streamlined focus, both companies are poised to adapt and thrive in their respective markets.
