Warner Bros. Discovery (WBD) has announced it will split into two independent publicly traded companies by mid-2026. The decision, unveiled earlier this week, represents a major reversal of the $43 billion merger that originally brought WarnerMedia and Discovery together in 2022. The move is widely seen as a strategic response to the evolving media landscape, particularly the shift away from traditional cable toward digital streaming.
The restructuring is intended to sharpen the focus of WBD’s vast portfolio and allow each business to operate with greater flexibility. One of the two newly formed companies will focus on premium content creation. This entity will house some of the most powerful brands in entertainment, including HBO and HBO Max, Warner Bros. Television and Motion Picture Group, DC Studios, Warner Bros. Games, and the company’s extensive film and TV libraries.
Current CEO David Zaslav will lead this content-focused company as President and CEO. His mandate will include expanding HBO Max on a global scale and continuing investment in franchise-driven, high-quality programming designed to compete with other major streaming platforms.
The second company will inherit WBD’s traditional broadcast and cable television assets. This includes globally recognized brands such as CNN, Discovery Channel, TLC, and HGTV. It will also oversee major free-to-air networks across Europe and digital offerings like Discovery+ and Bleacher Report.
Gunnar Wiedenfels, WBD’s current Chief Financial Officer, will head this company as President and CEO of Global Networks. His focus will be on maximizing the performance of these networks and generating consistent cash flow in an increasingly digital media market.
The split is a notable pivot away from the original vision of the WarnerMedia–Discovery merger, which had aimed to blend world-class scripted content with nonfiction, news, and sports into a single powerhouse. However, the combined company faced significant challenges, including mounting debt and declining profitability in traditional TV. The ongoing trend of “cord-cutting,” where audiences migrate from cable subscriptions to streaming platforms, has only intensified the pressure.
Analysts view the restructuring as a strategic realignment tailored to meet the demands of two very different media environments. By creating two distinct companies, Warner Bros. Discovery aims to allow each business to pursue specialized strategies, attract targeted investment, and leverage their individual strengths.
Pending regulatory approval and shareholder consent, the separation is expected to be completed by mid-2026.
