Warner Bros. Discovery has announced plans to split into two separate publicly traded companies by mid-2026 in a move designed to streamline operations and enhance shareholder value. The company said the tax-free transaction will separate its streaming and studio assets from its global network and cable holdings, with each business focusing on distinct growth strategies.
The new Streaming & Studios unit will include HBO Max, Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, and associated IP and production facilities. David Zaslav, President and CEO of Warner Bros. Discovery, will lead this unit following the separation. The Global Networks company, to be led by current CFO Gunnar Wiedenfels, will include CNN, TNT Sports, Discovery, various European free-to-air channels, and digital assets such as Discovery+ and Bleacher Report.
The company stated that the restructuring would enable each business to operate with greater agility and attract investor profiles that align with their respective financial models. To support the transaction, Warner Bros. Discovery has secured a $17.5 billion bridge facility from J.P. Morgan, which it plans to refinance before the separation. It also announced tender offers and consent solicitations across its existing capital structure, aiming to optimise debt ahead of the split. Global Networks will retain up to a 20% stake in the Streaming & Studios entity, which it plans to monetise post-separation to support balance sheet deleveraging.
The company cited strategic clarity, operational efficiency and access to capital markets as primary drivers for the split. Both units will enter into transitional service and commercial agreements to maintain operational continuity. The transaction is subject to regulatory and board approvals, as well as tax rulings from the US Internal Revenue Service.
Warner Bros. Discovery’s decision follows similar moves by industry peers such as Comcast and Lionsgate, which have sought to separate their legacy media operations from faster-growing streaming businesses. The company, which currently holds approximately $34 billion in debt, is under pressure to manage its leverage amid shifting media consumption patterns. S&P Global recently warned of a possible downgrade to junk status if debt metrics do not improve.
While the Streaming & Studios business is expected to carry a higher debt load, estimated by analysts at roughly five times the projected 2026 EBITDA, it is also generating positive momentum, reporting $339 million in streaming EBITDA in the first quarter of 2025 and exceeding subscriber forecasts. The Global Networks division, which reaches more than 1.1 billion viewers in over 200 territories, will focus on cost optimisation, live content, and digital monetisation through platforms like Discovery+, CNN’s new streaming service, and Bleacher Report.
Shares of Warner Bros. Discovery rose between 6 and 9% in early trading following the announcement.
