Warner Bros. Discovery has announced plans to divide its operations into two separate publicly traded companies—Streaming & Studios and Global Networks. The split is designed to give each business sharper focus and more flexibility to pursue growth independently, according to the company.
Streaming & Studios to Focus on Film, TV, and HBO Max
The new Streaming & Studios company will house Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, Warner Bros. Games, and related studio operations. CEO David Zaslav will lead the new company after the separation is complete.
The business will prioritize scaling the newly rebranded HBO Max, expanding into new markets, and hitting its $3 billion annual adjusted EBITDA target. Streaming & Studios will also continue producing theatrical content under its major brands, including Warner Bros. and DC.
Global Networks to Handle TV, Sports, and News
Global Networks will consist of the company’s entertainment, sports, and news networks such as CNN, TNT Sports, and Discovery. It will also include digital assets like Discovery+ and Bleacher Report. The division reaches more than a billion viewers globally and operates in 68 languages.
Warner Bros. Discovery CFO Gunnar Wiedenfels will lead Global Networks as CEO after the separation. The company plans to invest in live content, grow its digital presence, and maximize cash flow from its strong linear and streaming properties.
Separation Timeline and Structure
Warner Bros. Discovery expects the split to be completed by mid-2026. The transaction is structured to be tax-free for U.S. federal income tax purposes. Global Networks will retain up to a 20% stake in Streaming & Studios, which it plans to sell later to help reduce debt.
The company has secured a $17.5 billion bridge loan from J.P. Morgan to support the transition, which will be refinanced before the separation is finalized.
Zaslav and Wiedenfels to Remain Until Transition
Both Zaslav and Wiedenfels will stay in their current roles at Warner Bros. Discovery during the transition. They’ll lead their respective new companies afterward. The board and executive team believe the move will make each division more competitive and attractive to investors.
Next Steps
The deal still requires final board approval, tax clearance, and favorable market conditions. Legal and financial advisors include Kirkland & Ellis, J.P. Morgan, and Evercore. A shareholder webcast is available on the company’s investor website for more details.
Zaslav’s official comments
“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. “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.”
Wiedenfels comments
“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.”
Di Piazza, Jr. comments
“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 the Warner Bros. Discovery Board of Directors. “This announcement reflects the Board’s ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.”
