Warner Bros. Discovery to Split into Two Public Companies by 2026
Warner Bros. Discovery (WBD) has announced plans to split into two separate publicly traded companies by mid-2026, marking a major restructuring just two years after its high-profile merger.
Under the proposed plan, the media conglomerate will create one company focused on streaming and content production—called “Streaming & Studios”—and another focused on cable television and news networks, called “Global Networks.”
The Streaming & Studios unit will include HBO, HBO Max, Warner Bros. Television and Motion Picture Group, DC Studios, the Warner Bros. film library, video games, consumer products, and theme parks. It will continue to be led by current CEO David Zaslav.
Global Networks, meanwhile, will encompass CNN, Discovery Channel, Discovery+, TNT Sports, Bleacher Report, and various international and free-to-air TV brands. WBD CFO Gunnar Wiedenfels has been tapped to lead this unit.
According to the company, the move will be structured as a tax-free transaction and is expected to allow both new companies to better focus on their respective markets and growth strategies. Once the separation is finalized, Global Networks is expected to retain up to a 20% stake in the Streaming & Studios business.
The announcement triggered a positive reaction on Wall Street, with WBD shares rising between 8% and 13% in early trading. Analysts see the decision as a strategic shift to address the diverging realities of the legacy cable and digital streaming industries.
“The separation will give each company the independence, resources, and strategic clarity needed to unlock greater value for shareholders,” said Zaslav in a statement.
The restructuring reflects ongoing challenges in the traditional cable business, which continues to decline as consumers shift to on-demand and digital platforms. At the same time, WBD is aiming to strengthen its position in the competitive streaming landscape alongside Netflix, Disney+, and others.
The separation is subject to regulatory and board approvals, with completion expected by mid-2026.
Further details on debt allocation, licensing arrangements, and company branding are expected in upcoming shareholder communications and regulatory filings.
