Warner Bros. Discovery is splitting into two publicly traded entities. The media company on Monday disclosed the decision, which separates its cable TV network assets, along with Discovery+ and other digital products, from the HBO Max streaming service and TV and film studios.
“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,” said WBD CEO and President David Zaslav in a statement.
The tax-free split follows WBD’s move in December to separate its global linear TV networks and its streaming and studio businesses into two distinct operating divisions.
And the move comes as WBD, like other legacy media players, has been trying to navigate the evolving entertainment landscape. Its legacy linear TV networks – while still a significant revenue generator (contributing $4.77 billion in Q1 2025) – continue to be in decline (revenue down 7% yoy in Q1) as consumers migrate away from the traditional pay TV ecosystem. And amid the streaming landscape, programmers like WBD are working to compete against video services from tech giants like Google and Amazon, which have deep pockets and are unburdened by legacy TV networks businesses, as they pursue scale and profitability for direct-to-consumer streaming ambitions.
WBD’s Zaslav will serve as president and CEO of the planned Streaming & Studios entity, while current WBD CFO Gunnar Wiedenfels will be president and chief executive of the Global Networks company. Both will maintain their current roles at WBD until the separation, which is expected to be completed by mid-2026.
Here’s how WBD’s splitting up its assets:
Streaming & Studios – the company will house studios Warner Bros. Television, Warner Bros. Motion Picture Group, and DC Studios, as well as HBO and streamer HBO Max (including international sports offering), Warner Bros. Games, Tours, Retail and Experiences, along with studio production facilities.
WBD said the Streaming & Studios company will be focused on scaling HBO Max, which is available in 77 markets. It will also continue to invest in HBO programming to differentiate and drive the platform.
Global Networks – The company will include linear networks including CNN, TNT Sports in the US and Discovery, free-to-air channels across Europe, as well as digital products including the Discovery+ streaming service, Bleacher Report (B/R) and CNN’s new streaming offering.
Per WBD, today these assets collectively reach 1.1 billion unique viewers in 68 languages across 200 countries and territories.
The Global Networks company will retain up to a 20% stake in the Streaming & Studios company, with plans to use monetize its ownership stake to help pay down debt.
In announcing the tax-free separation, WBD said splitting the company will allow each entity to focus on creating the most value from their respective assets, while providing flexibility to better compete.
“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," said Wiedenfels in a statement. "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.”
Notably, the split of Discovery content and streaming service from the premiere HBO streamer and TV and film studio effectively undoes a marriage that was created when Discovery and WarnerMedia completed their merger just three years ago to form the existing WBD company.
That combination gave birth to the revamped Max service that launched in 2023, bringing together premium HBO programming with broader-based, reality-focused content from Discovery and Discovery+. But dropping the recognizable HBO moniker that to many signaled prestige and appointment TV proved to be a misstep and last month WBD announced a reversal, with plans to revive the brand and revert its flagship streamer’s name HBO Max.
WBD has also struggled with Wall Street since the merger, with the company’s stock falling nearly 60% as of early June since the combined company was created in 2022, per the WSJ. And in a symbolic rebuke of Zaslav leadership, earlier this month more than 59% of WBD’s voting shareholders rejected the CEO’s $51.9 million pay package for 2024.
Still, as mentioned, media companies are navigating an evolving landscape and WBD isn’t the first to split off its legacy TV networks business. Comcast earlier this year announced the spin out of most of the company’s linear cable networks into a new publicly traded entity named Versant, while keeping hold of Bravo, NBC broadcast and Peacock streaming service assets, among others.