Warner Bros. Discovery, just three years after coming together as potentially the next big media giant, said Monday it plans to split into two publicly traded companies — one for its global cable channels and the other for its movie studios and streaming platforms.
David Zaslav, president and CEO of WBD, will become president and CEO of Streaming & Studios, while Gunnar Wiedenfels, WBD CFO, will serve as president and CEO of Global Networks. The separation is expected to be completed by 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,” Zaslav said 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.”
The move comes after NBCUniversal decided to spin off most of its cable channels into a separate company to be named Versant. That spin is expected to completed by the end of the year.
“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,” Wiedenfels added. “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.”
Streaming & Studios will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, in addition to their corresponding film and television libraries. Global Networks, meanwhile, will include international entertainment, sports and TV news brands such as CNN, TNT Sports, Discovery, Discovery+, Bleacher Report and European free-to-air channels.
Since TNT lost the rights to air NBA games, the value of the cable channel portfolio lost much of its value, analysts have said.
Warner Bros. Discovery stock is down 60% since the spring of 2022 when the two companies came together. WBD shares were up 7% in pre-market trading on Monday, a sign Wall Street embraced the idea of the proposed split initially. Shares took a turn during the day, and closed down nearly 3% to $9.53 a share.
UPDATED: This story was updated to include WBD’s closing stock price on Monday.
