Warner Bros. Discovery to Split Into Two Separate Companies
Warner Bros. Discovery (WBD), the parent company of HBO and CNN, has unveiled a major corporate restructuring plan that will divide the company into two independent businesses. The move is aimed at boosting performance in both its thriving streaming division and its struggling traditional cable TV segment.
Streaming & Studios: The New Powerhouse
One of the two new entities will focus entirely on WBD’s high-growth content and streaming operations. This includes its acclaimed film division and HBO Max—the streaming platform known for hit titles such as The Last of Us, The White Lotus, and Succession. This division, dubbed Streaming & Studios, will aim to strengthen WBD’s competitive edge in the global streaming race.
President and CEO David Zaslav will lead the new Streaming & Studios unit, guiding its strategic direction as it capitalizes on the platform’s impressive momentum. WBD’s streaming operations have already generated nearly $3 billion in revenue over the past two years and ended the first quarter of 2025 with more than 122 million subscribers.
Global Networks: A Bet on Legacy Brands
The second entity, named Global Networks, will inherit the company’s traditional broadcast and cable operations. This includes iconic television brands such as CNN, TNT Sports, and Discovery.
However, these legacy channels face mounting challenges. CNN, for instance, drew only 560,000 average primetime viewers in Q1 2025, representing a 6% year-over-year decline. Earlier this year, the network laid off over 200 employees amid efforts to reduce costs and reshape its programming.
WBD’s Chief Financial Officer, Gunnar Wiedenfels, has been tapped to lead Global Networks.
A Strategic Move to Drive Shareholder Value
According to a statement released by the company, the decision is rooted in the belief that “enhanced strategic focus and flexibility will better position storied brands across entertainment, sports, and news to drive shareholder value.”
Zaslav echoed this sentiment, stating:
“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.”
Timeline and Future Outlook
The corporate split is expected to be completed by mid-2026. While the move reflects broader trends in media consumption, it also underscores the stark divergence in fortunes between the booming streaming business and the declining cable television industry.
With this new structure, Warner Bros. Discovery aims to unlock greater value across both digital and traditional media platforms.