Warner Bros. Discovery to split streaming and cable businesses by 2026

Warner Bros. Discovery announced plans on Monday to split into two standalone entities, one focused on its studios and streaming operations, and the other on its traditional cable television networks, in a sweeping restructuring move designed to better position the media giant in a rapidly evolving digital landscape.

The decision signals a decisive shift away from the media conglomerate model that has dominated the industry for decades, as the company seeks to scale its streaming platforms more efficiently without the burden of its declining cable portfolio.

Following the split, which is expected to be completed by mid-2026, Chief Executive David Zaslav will lead the newly formed studios and streaming company. The business will include assets such as HBO and Max. Chief Financial Officer Gunnar Wiedenfels will take the helm of the global networks unit, which comprises linear television brands including CNN.

“By operating as two distinct and optimised 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,” Zaslav said in a statement.

Warner Bros. Discovery also confirmed it has launched tender offers to restructure existing debt, backed by a $17.5 billion bridge loan from J.P. Morgan. The loan will be refinanced ahead of the planned separation.

The restructuring will be structured as a tax-free transaction. As part of the deal, the global networks business will retain up to a 20% stake in the newly created studios and streaming company, a holding that the firm plans to monetise in future to accelerate debt reduction.

The announcement marks the latest in a series of major shifts for Warner Bros. Discovery since the merger of WarnerMedia and Discovery Inc. in 2022, and comes amid ongoing pressures facing legacy cable broadcasters in an increasingly digital-first entertainment environment.