©Courtesy of Warner Brothers Discovery
Warner Bros. Discovery has announced that it will be splitting into two public companies next year, separating its cable operations from its streaming services. The new companies will be known as Streaming & Studios and Global Linear Networks when the restructuring is completed in the middle of 2026.
In announcing the move, Warner Bros. Discovery’s CEO David Zaslav stated: “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.”
As a result of the move, said the official statement from Warner Bros. Discovery, “Both companies will have a clear path to de-leveraging with significant cash flow and strong liquidity through cash and revolver availability.”
Zaslav will head the new Streaming & Studios company, which will encompass Warner Bros. Television, the Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, as well as their film and television libraries. Meanwhile, Discovery CEO’s chief financial officer Gunnar Wiedenfels will head up Global Linear Networks, which will include CNN, and TNT in the U.S., plus the Discovery+ streaming service and the Bleacher Report.
The restructuring comes just three years after Discovery’s acquisition of Warner Bros. for $43 billion. But since then, there has been a sharp decline in the number of cable subscribers as viewers increasingly make use of streaming services. The number of cable subscribers in the United States has declined from 100 million in 2015 to 60 million today.
Shares of Warner Bros. Discovery, which had declined by 60% since the merger, initially rose by about 12 percent in response to the restructuring announcement. The company’s board still needs to ratify the restructuring plan. In a nonbinding vote, shareholders of Warner Bros. Discovery voted on June 2 to reject Zaslav’s pay package that amounted to more than $61 million this year.
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This Warner Bros. Discovery restructuring is not without precedent in response to the weakness of the cable sector. In 2024, Comcast Corp. announced that it was splitting its cable channels, including USA Network, MSNBC and CNBC, from its movie studio and streaming platform. Last month, Lionsgate Studio Corp. also separated its cable operations from its streaming channel, Starz Entertainment Corp.
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