Warner Bros. Discovery (WBD) is officially splitting into two separate companies.
The David Zaslav-led conglom had signaled the move with an internal reorganization that grouped its businesses into Streaming & Studios and Global Networks. earlier this year. Today — a bit earlier than many expected — it announced the separation will become an actual split along the lines of what Comcast has underway, spinning out its cable networks from NBCUniversal, in a seismic reconfiguration of the U.S. media business.
Zaslav will lead Streaming & Studios while CFO Gunnar Wiedenfels takes on the President and CEO fo Global Networks role. Both will continue in their present roles at WBD until the separation, which is expected to close in mid-2026.
“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 in a statement. “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.”
Zaslav’s new Streaming & Studios outfit will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. Global Networks, meanwhile, will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R).
Legacy media is responding to major shifts in the business led by the rise of streaming and faster-than-anticipated decline of linear television that has left investors confused and stock prices floundering. Comcast has said it expects its cable spinoff, called Versant, by year end. The idea is that cable network goups like these two, which still throw off significant cash and revenue, could merge or be acquired by buyers like private equity firms that would manage their decline so these splits are likely to presage a period of media M&A.
Lionsgate Studios and Starz recently split. Legacy media companies have been making similar moves of late. Lionsgate’s split from Starz was confirmed last month while Comcast spun out a number of its cable networks into a new company, Versant.
“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. “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.”
“We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders,” added Samuel A. Di Piazza, Jr., chair of WBD’s board. “This announcement reflects the Board’s ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.”
Benefits WBD said will unlock value for shareholders andcreate opportunities for both new businesses to thrive by include: equipping each to be faster and more aggressive in pursuing opportunities that strengthen their competitive positions; forming world-class management teams focused on creating greater strategic flexibility and focus so that each business can invest in and pursue its operational and financial goals; and enabling each company to be more agile and attract a shareholder base aligned with its growth prospects and financial profiles.
WBD said it intends the split to be tax-free for U.S. federal income tax purposes and that the new companies plan to implement arm’s length transition services and commercial agreements post-separation “to facilitate the transition and maintain continued operational efficiencies.”
Jill Goldsmith contributed to this report
