In a bold move to navigate the rapidly evolving media landscape, Warner Bros. Discovery announced on Monday its plan to split into two separate publicly-traded companies by mid-2026, subject to regulatory approvals and other conditions. The restructuring will divide the media giant into one entity focused on streaming and content production and another centered on traditional television operations, mirroring a strategy recently adopted by rival Comcast.
David Zaslav, Warner Bros. Discovery’s CEO, will helm the streaming-focused company, which will include the Warner TV and movie studios, HBO, the HBO Max streaming platform, and a games and experiences division. The television company, led by Chief Financial Officer Gunnar Wiedenfels—known for his aggressive cost-cutting measures—will oversee Warner’s global TV networks, including TNT, TBS, and CNN, along with digital brands like Discovery+ and Bleacher Report. The split aims to provide both entities with greater strategic focus and flexibility to compete in a fragmented media market.
“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. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history,” said Zaslav. “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.”
The decision comes as Warner Bros. Discovery grapples with significant challenges since its formation in 2022 through the merger of AT&T’s WarnerMedia and Discovery Communications. The company has faced declining revenues, particularly in its cable networks, exacerbated by the loss of high-profile NBA broadcasting rights, which had long drawn large audiences to TNT. Under Zaslav’s leadership, Warner has also struggled with inconsistent streaming strategies and reduced investment in original content for its cable networks, leading to a write-down in the value of its traditional TV assets.
The streaming entity will prioritize expanding HBO Max and investing heavily in premium programming to compete with giants like Netflix and Disney+. Meanwhile, the TV company will focus on managing its portfolio of linear networks and associated digital platforms, aiming to stabilize its position in a declining cable market.
This restructuring follows a similar playbook to Comcast’s recent breakup of NBCUniversal, which spun off its cable networks into a new entity called Versant while retaining its broadcast and streaming assets. Industry analysts see Warner’s move as a response to the growing divide between traditional media and streaming, with companies seeking to streamline operations and appeal to investors looking for growth in digital platforms.
The announcement has sparked mixed reactions. Some investors welcome the clarity of separating the high-growth potential of streaming from the declining traditional TV business. Others, however, question whether the TV company can remain viable without the NBA and other premium content. Warner Bros. Discovery’s stock has been volatile, reflecting broader uncertainty in the media sector as cord-cutting accelerates and streaming competition intensifies.
As the company prepares for the split, Zaslav and Wiedenfels face the challenge of proving that two leaner, more focused entities can succeed where the combined Warner Bros. Discovery has struggled. The media industry will be watching closely to see if this strategic pivot can reposition the company for long-term success in an increasingly digital world.
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