Warner Bros. Discovery Plans Major Corporate Split by Next Year
In a bold move reflecting the shifting landscape of media consumption, Warner Bros. Discovery (WBD) has announced plans to divide itself into two separate publicly traded companies by mid-2026. This strategic decision aims to sharpen focus and unlock greater flexibility amid the growing dominance of streaming over traditional cable.
Breaking Down the New Structure
The split will create:
- A Streaming and Studios Company — This entity will encompass Warner Bros. Discovery's film assets alongside its flagship streaming service, HBO Max.
- A Global Networks Company — This side will manage cable and broadcast networks like CNN, TNT Sports, and Discovery.
David Zaslav, currently CEO of Warner Bros. Discovery, will lead the streaming and studios firm, guiding it through the competitive streaming wars. Meanwhile, Gunnar Wiedenfels, the current chief financial officer, is set to take the helm as CEO for the global networks business.
Why the Split?
According to company leadership, operating as two distinct entities will empower these iconic brands with sharper strategic focus and the flexibility they need to thrive in today’s evolving media environment. Zaslav emphasized that this separation is designed to enhance each company's ability to compete effectively.
This announcement aligns with earlier signals and moves by WBD, including hints of restructuring toward this goal late last year. It also follows industry trends, as other media giants embark on spin-offs to better respond to the changing ways audiences engage with content.
Industry Context and Market Response
Warner Bros. Discovery’s restructuring echoes similar transformations taking place across the media sector. For instance, major cable companies have spun off news and entertainment networks into separate public companies to streamline operations and sharpen competitive edges.
Following the split announcement, Warner Bros. Discovery’s shares surged over 9% in premarket trading, signaling investor confidence in the company’s new direction.
What to Watch Next
The split is expected to complete by mid-2026, with close attention on how both companies manage their portfolios and evolve their content strategies amid fierce competition from both legacy players and digital newcomers.
As the media industry continues to pivot sharply towards streaming and digital-first models, this move by Warner Bros. Discovery could set a precedent for how traditional media giants adapt and thrive.
