Warner Bros. Discovery to Split into Two Public Companies by 2026

NEW YORK, June 9, 2025 — Warner Bros. Discovery (WBD) announced plans to split into two publicly traded companies by mid-2026. This separation comes as the media industry increasingly shifts from traditional cable to streaming services.

The split will divide WBD into two distinct entities: one focused on streaming and film production, and the other on traditional television networks. The Streaming & Studios company will consist of Warner Bros. Television, Motion Picture Group, DC Studios, HBO, and HBO Max. David Zaslav, current CEO of WBD, will lead this new venture.

The second company, Global Networks, will include CNN, TNT Sports, Discovery, among others, and will be led by current CFO Gunnar Wiedenfels. WBD has reported that shares increased by 6% in pre-market trading following the announcement.

“By operating as two distinct and optimized companies, we empower these iconic brands with sharper focus and strategic flexibility,” Zaslav stated. “This separation will invigorate each company and allow them to pursue investment opportunities more effectively.”

The transaction will be supported by a $17.5 billion bridge facility from J.P. Morgan and is designed to be tax-free for U.S. federal income tax purposes. Global Networks will retain up to a 20% stake in Streaming & Studios.

The separation aims to provide each entity with the ability to focus on their specific markets, enhancing potential growth and shareholder value. This move restores speculative discussions about broader shifts in the media landscape as companies strive to adapt to changing viewer habits.

The completion of this transaction is subject to board approval and tax considerations. Warner Bros. Discovery will address additional details in a conference call later today.