Warner Bros. Discovery announced today that it plans to split into two public companies, with the separation expected to be completed by mid-2026. This announcement comes as the company adapts to the latest consumer trend, with viewers transitioning from cable to streaming.
WBD announced in a press release that it plans to split into two separate companies: one for streaming and studios, and the other for global networks. The streaming company will combine its movie properties with HBO Max, while the global networks division will include CNN, TNT Sports, and Discovery.
David Zaslav, President and CEO of Warner Bros. Discovery, told investors: “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. 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.”
Gunnar Wiedenfels, CFO of Warner Bros. Discovery, stated, “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 maximizing our network assets and driving free cash flow.”
Following the news of the split, Warner Bros. Discovery’s shares rose approximately 6% in premarket trading.
By CEO NA Editorial Staff
