One division will concentrate on streaming services, while the other will focus on cable network operations.
Warner Bros. Discovery has announced a sweeping strategic transformation that will see the company split into two publicly traded entities in a tax-free transaction, designed to unlock greater value and operational focus. The two new companies—Streaming & Studios and Global Networks—will each pursue distinct growth paths tailored to their strengths and market opportunities.
The Streaming & Studios division will encompass Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with a vast film and television library, Warner Bros. Games, and global studio operations in Burbank and Leavesden. This business will be helmed by current Warner Bros. Discovery President and CEO David Zaslav, who will maintain his position while leading the newly formed unit. Streaming & Studios is expected to continue scaling HBO Max, already operating in 77 markets with expansion planned for 2026, and will build on HBO’s acclaimed programming to drive growth. The company aims to reach a target of $3bn in annual adjusted EBITDA.
Global Networks, which will be led by current CFO Gunnar Wiedenfels, will include a formidable portfolio of television and digital brands such as CNN, TNT Sports, Discovery, and the Discovery+ streaming platform, alongside free-to-air channels across Europe and the digital sports outlet Bleacher Report. With operations spanning 200 countries and reaching over a billion unique viewers in 68 languages, the Global Networks entity will continue to capitalise on its strength in live TV, high-margin operations and robust free cash flow. It will focus on expanding internationally, enhancing live news and sports content, and growing digital properties.
The separation aims to create two more agile and focused companies, each equipped to pursue tailored strategies, optimise capital allocation, and attract shareholders aligned with their distinct financial profiles and growth trajectories. Warner Bros. Discovery emphasised that both businesses would be supported by strong financial structures. As part of this process, the company has launched tender offers and consent solicitations to optimize its debt portfolio, backed by a $17.5bn bridge facility from JP Morgan, which is expected to be refinanced before the split.
Following the separation, Global Networks will retain up to a 20% stake in Streaming & Studios, which it plans to monetize in a tax-efficient way to further reduce debt. The two companies will also enter into transition service and commercial agreements to ensure a smooth operational handover and maintain efficiency.
The transaction is expected to close by mid-2026, pending final approval from Warner Bros. Discovery’s board, favorable market conditions, and regulatory approvals, including a tax ruling from the IRS. Financial advisory for the transaction is being provided by JP Morgan and Evercore, with legal counsel from Kirkland & Ellis LLP.
Zaslav said: “The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history. By operating as two distinct and optimized 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.”
Wiedenfels added: “This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value. At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.”
Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors, commented: “We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders. This announcement reflects the Board’s ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.”
