Warner Bros. Discovery splits into two companies amid streaming shift
- Warner Bros. Discovery announced a split into two publicly traded companies focused on cable and streaming services.
- The restructuring aims to enhance strategic focus and investor appeal amidst declining viewership in cable networks.
- The split is expected to be completed by mid-2026 and has already resulted in a positive market response.
On June 8, 2025, Warner Bros. Discovery announced an extensive reorganization, which will see the company split into two publicly traded entities. This division aims to separate its legacy cable business from its growing streaming arm. The new structure will create a company focused on its cable networks, which includes CNN and TNT Sports, and another dedicated to the HBO Max streaming platform along with Warner Bros. studios. This strategic move is a response to significant industry challenges, as traditional cable networks have experienced a decline in viewership due to the shift towards streaming services. David Zaslav, the current CEO of Warner Bros. Discovery, will lead the Streaming & Studios division, while Gunnar Wiedenfels, the chief financial officer, will head the new Global Networks division. This change aims to provide each company with greater strategic flexibility to maximize investment opportunities and drive shareholder value. The company has faced pressures related to its stock value, which has dropped significantly since its merger in 2022, leading to the decision to restructure and allow for a more focused business strategy for each entity, enhancing their individual missions and market positions. Industry analysts have raised concerns regarding the effectiveness of this split in driving growth, given the ongoing challenges faced by legacy networks. With consumers increasingly favoring streaming platforms over traditional cable offerings, the decision to separate these entities reflects a broader trend in the media landscape. The restructuring process is expected to be completed by mid-2026, pending board approval. While the move is seen as a step to unlock the potential of both companies, there are questions about whether the changes will result in increased growth for the cable division, which has struggled to adapt to changing viewer preferences. The announcement sparked a positive response from the market, with shares rising significantly during premarket trading after the news. This split signifies a crucial moment for Warner Bros. Discovery as it seeks to navigate the evolving media environment and enhance the viability of its diverse entertainment offerings.