Warner Bros. Discovery to split streaming and networks into two companies

Warner Bros. Discovery (WBD) has announced plans to split its business into two publicly traded entities, Streaming & Studios and Global Networks, in a move aimed at unlocking shareholder value and creating more focused growth strategies.

David Zaslav, president and CEO of WBD, will lead the Streaming & Studios unit, which will house HBO, HBO Max, Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, and Warner Bros. Games. Gunnar Wiedenfels, current CFO of WBD, will helm Global Networks, which includes CNN, TNT Sports, Discovery, Bleacher Report, and the Discovery+ streaming service.

The separation, expected to complete by mid-2026, will be structured as a tax-free transaction and is subject to board approval, tax rulings, and market conditions.

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According to WBD, the move aims to give each business greater strategic focus and agility. The company said the two units would be able to pursue tailored operational goals and attract shareholder bases aligned with their distinct financial profiles.

Streaming & Studios will continue to scale HBO Max, which is currently available in 77 markets, with additional launches planned for 2026. The unit is expected to generate sustainable revenue and aims to hit at least US$3 billion in annual adjusted earnings before interest, taxes, depreciation, and amortisation.

Global Networks will operate entertainment, sports, and news television brands in 200 countries, reaching over a billion viewers. It will also focus on international expansion, live content investments, and growing digital extensions of its core brands.

To support the separation, WBD has launched a US$17.5 billion bridge facility with J.P. Morgan, which it plans to refinance ahead of the transaction. Global Networks will retain up to a 20% stake in Streaming & Studios, which it intends to monetise in a tax-efficient way.

"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.

He added, "By operating as two distinct and optimised 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."

Echoing similar sentiments, Wiedenfels said, "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. 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 maximising our network assets and driving free cash flow."

In tandem, Samuel A. Di Piazza, Jr., chair of the WBD board of directors added, "We committed to shareholders to identify the best strategy to realise the full value of our exciting portfolio of assets, and the board believes this transaction is a great outcome for WBD shareholders. This announcement reflects the Board's ongoing efforts to evaluate and pursue opportunities that enhance shareholder value." 

The split comes shortly after WBD rebranded its flagship streaming service from Max back to HBO Max. In a statement seen by MARKETING-INTERACTIVE at the time, the company said the rebrand would “further drive the service forward and amplify the uniqueness that subscribers can expect from the offering.”

“It is also a testament to Warner Bros. Discovery’s willingness to keep boldly iterating its strategy and approach—leaning heavily on consumer data and insights—to best position itself for success,” the company said. Zaslav added that re-emphasising the HBO brand is part of a broader push to accelerate long-term growth.

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