Three years after Warner Bros. Discovery was created through a high-profile merger between WarnerMedia and Discovery Inc., the media giant is breaking up. The company announced today (June 9) that it will split into two publicly traded entities: one focused on streaming and studios, the other on cable networks. The move reflects a broader industry shift toward streaming as traditional television networks continue to decline.
WBD CEO David Zaslav, who previously helmed Discovery Inc., will lead the new streaming and studio company, including HBO Max, Warner Bros. Motion Picture Group and DC Studios. WBD’s current CFO, Gunnar Wiedenfels, will head the newly formed global networks business, which will encompass CNN, TNT Sports and Discovery. Wiedenfels has overseen WBD’s finances since 2022, following the merger. The split is expected to close by mid-2026, pending board approval.
“Three years later, it’s again time to make a bold choice to reach the next stage of transformation,” Zaslav told analysts today. “Each company can now go further and faster apart than they can together. There are times when distributors just want HBO Max, and we’ve ended up in lengthy negotiations trying to bundle more of our products. And there are times when others just want the free-to-air or linear services.”
WBD hasn’t announced the names of the two spinoff entities yet. What we know is that the streaming and studios company will center its efforts on expanding HBO Max, which is now available in 77 markets and recently underwent another rebrand. According to Zaslav, the platform is on track to surpass 150 million subscribers by the end of next year.
The newly formed global networks company includes assets that reach 1.1 billion viewers in nearly 70 languages across 200 countries. “We will focus on identifying innovative ways to work with distribution partners to create value for both linear and streaming audiences worldwide, while maximizing our network assets and driving free cash flow,” Wiedenfels said in a statement.
The announcement reflects a broader shift within the media industry, as legacy cable networks continue to lose relevance in the streaming age. In November 2024, Comcast revealed plans to spin off its cable networks into a standalone company and pivot its focus to brands like NBC and Bravo. WBD had already hinted at similar intentions, having restructured its business last year into separate streaming and linear network units.