Warner Bros. Discovery to Split into Two Distinct Media Companies

Warner Bros. Discovery has announced a corporate restructuring, planning to separate into two distinct publicly traded companies.

This tax-free transaction is designed to allow each new entity to better leverage its specific strengths within the increasingly competitive global media landscape.

This move underscores a broader industry trend where large corporations are unbundling assets to achieve better focus and unlock shareholder value amidst evolving consumption habits and intensified competition for content and eyeballs.

Commenting on the announcement, president and CEO of the Streaming & Studios division, David Zaslav, said: “By operating as two distinct and optimised companies, we are empowering these iconic brands with the sharper focus they need to compete effectively.”

CFO Gunnar Wiedenfels, who will lead Global Networks, echoed this, stating the separation would energise both firms, allowing them to capitalise on specific strengths and financial profiles to drive shareholder return. This emphasis on a “sharper focus” directly addresses market demands for specialized business models in a fragmented media environment.

The Streaming & Studios division will encompass Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with their extensive film and television libraries.

The primary objective for this move is to drive revenue and profit growth by scaling HBO Max, which currently operates in 77 markets with further expansion planned through 2026.

This focus highlights the commercial imperative of direct-to-consumer streaming platforms in current media strategies.

Conversely, the Global Networks division will consolidate premium entertainment, sports, and news television brands, including CNN, TNT Sports in the U.S., and various major European free-to-air channels.

This entity will also include key digital platforms such as the Discovery+ streaming service and Bleacher Report.

The strategic aim for Global Networks is to capitalise on its strong market presence to pursue international growth opportunities while optimising its traditional channel assets to enhance shareholder returns, particularly within the lucrative sports broadcasting and live content segments.

The planned separation, expected to be finalised by mid-2026, aims to provide each new company with the agility required to attract an investor base aligned with their individual growth trajectories.

Both entities will maintain robust capital structures, supported by a substantial $17.5 billion bridge facility.

Don’t miss out on the latest in sports business – Subscribe today to the free Ministry of Sport newsletter and stay ahead of the game. For even more exclusive insights, event tickets, professional development and networking events, become a MoS Member today!.