Strategic Reset: Warner Bros. Discovery To Split Into Two Public Companies As Cable Business Suffers 

Warner Bros Discovery’s announcement that it will split into two independent, publicly traded companies by mid-2026 marks a potential end to decades of media consolidation, which has given rise to sprawling global conglomerates spanning film, streaming, and television.

The Streaming and Studios company will include Warner Bros Television, Motion Pictures, DC Studios, HBO, HBO Max, Games, and related experiences, while Global Networks will include CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the Discovery+ streaming service and Bleacher Report.

The strategic reset of Warner Bros Discovery will give its new streaming-focused company greater room to scale by producing best-in-class studio content, free from the burden of its imploding cable networks business. 

“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,” CEO David Zaslav wrote in a statement.

Bloomberg noted, “Warner Bros. recently completed a restructuring into two divisions to capitalize on the consumer’s shift away from traditional pay-TV to new online options,” adding, “US media groups have struggled to improve their profitability in the face of an expensive streaming war against Netflix.” 

Last month, Comcast followed a similar path to Warner Bros. by splitting NBCUniversal into two divisions: Versant, which will house cable networks like MSNBC and USA, and a separate unit that will hold the NBC broadcast network, the Peacock streaming service, and Universal Studios theme parks.

Warner Bros noted that it launched tender offers to restructure its existing debt, funded by a $17.5 billion bridge facility supplied by J.P. Morgan. 

Additional color on the rationale for the split: 

• Enhance strategic agility and operational focus.

• Align each business with investors based on distinct growth and financial profiles.

• Unlock shareholder value through tailored investment and capital allocation strategies.

• Global Networks will retain up to a 20% stake in Streaming & Studios to be monetized later for debt reduction.

The split is expected to be completed by mid-2026.