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Warner Bros. Discovery Splits into Two Companies Amid Media Landscape Changes

6/9/2025
In a bold move, Warner Bros. Discovery announces its split into two companies to tackle the evolving media landscape, with one focusing on streaming and studios while the other manages TV networks.
Warner Bros. Discovery Splits into Two Companies Amid Media Landscape Changes
Warner Bros. Discovery announces a major split into two companies to enhance focus and competitiveness in the changing media landscape.

Warner Bros. Discovery Announces Major Split into Two Companies

Warner Bros. Discovery, the parent company of renowned brands such as HBO Max, CNN, and TNT, made headlines on Monday with its decision to split into two distinct companies. This strategic move aims to address the challenges posed by a rapidly changing audience landscape in the media industry.

New Structure and Leadership

The upcoming split will create one company that will manage Warner's studios and streaming units, including the popular HBO Max platform, the expansive DC Comics universe, as well as various film production and distribution ventures. This segment will be led by WBD CEO David Zaslav, who has been at the forefront of the company’s strategic initiatives.

Conversely, the second entity will encompass WBD's TV networks and will be headed by CFO Gunnar Wiedenfels. This new structure aims to provide each division with a sharper focus and the strategic flexibility necessary to thrive in today’s increasingly competitive media environment. Zaslav remarked, “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.”

Context and Implications of the Split

This announcement comes as no surprise, confirming prior reports indicating that WBD was preparing for such a significant restructuring. The move aligns with Zaslav's ongoing efforts to reset the company's financial trajectory. In December, WBD had already initiated a restructuring plan that many industry analysts interpreted as a precursor to this forthcoming split.

The news also parallels a recent announcement from Comcast, which revealed plans to spin out its cable networks, including popular channels like CNBC, MSNBC, E!, Syfy, Golf Channel, USA, and Oxygen. This new entity is slated to be named Versant. Comcast is the parent company of NBCUniversal, which oversees NBC News.

Market Reaction and Future Outlook

Following the announcement, WBD shares experienced a boost, rising as much as 9% in pre-market trading on Monday. However, it's important to note that under Zaslav's leadership over the past four years, WBD shares have declined by approximately 66%. This split represents a critical juncture for the company as it seeks to navigate the complexities of the modern media landscape and potentially recover its market position.

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