Warner Bros. Discovery (NASDAQ: WBD) is planning a major transformation that will reshape its presence in the global entertainment industry. The company announced it will separate into two distinct entities by mid-2026: one focused on streaming and studios, and the other on global networks. This move is set to have wide-ranging implications for investors, employees, and the broader media landscape.
Under the new plan, Warner Bros. Discovery will create a streaming and studios company, which will house its film properties and the popular streaming service HBO Max. This division will be led by current CEO David Zaslav, who has overseen the company through a period of significant change and integration since the WarnerMedia and Discovery merger. The other entity, a global networks company, will include major assets such as CNN, TNT Sports, and Discovery’s international network portfolio. Gunnar Wiedenfels, currently the company’s CFO, will take the helm as CEO of this new networks business.
The split is expected to be completed by the middle of 2026, giving both companies time to establish their own strategies and operational structures. For Warner Bros. Discovery, this move is a strategic response to the evolving demands of the media and entertainment industry, where streaming and traditional networks are facing very different challenges and opportunities.
The decision to separate the businesses comes as the media industry continues to experience rapid shifts in consumer behavior and technology. Streaming has become the dominant way people watch movies and TV shows, while traditional cable and satellite networks are grappling with cord-cutting and declining viewership.
By creating a dedicated streaming and studios company, Warner Bros. Discovery aims to sharpen its focus on content creation and direct-to-consumer delivery. HBO Max, which has become a key player in the streaming wars, will be at the center of this new entity. The studios division will continue to produce blockbuster films and premium series, leveraging iconic brands and franchises.
Meanwhile, the global networks company will concentrate on live news, sports, and non-scripted programming, areas where linear networks still hold significant value. CNN and TNT Sports, in particular, remain influential in their respective markets, and Discovery’s international channels provide a broad global footprint.
David Zaslav’s leadership of the streaming and studios business signals a commitment to aggressive content investment and international expansion. Zaslav has a track record of navigating complex integrations and building global brands, which will be crucial as the company competes with giants like Netflix, Disney, and Amazon in the streaming space.
Gunnar Wiedenfels, stepping into the CEO role for the networks company, brings financial discipline and operational expertise. His experience as CFO will be valuable in managing the cost structures and revenue models of traditional networks, which face ongoing pressure to adapt.
For shareholders, the breakup could unlock value by allowing each company to pursue tailored strategies and capital allocation. Investors will have the opportunity to choose between two distinct business models: one focused on high-growth, high-investment streaming and content production, and the other on stable, cash-generating network operations.
The separation also comes at a time when media conglomerates are reassessing their portfolios and seeking ways to respond to changing market dynamics. By splitting into two, Warner Bros. Discovery is positioning itself to be more agile and responsive to industry trends.
The next year will be critical as Warner Bros. Discovery prepares for the split. Both companies will need to define their leadership teams, operational plans, and financial structures. Regulatory approvals and stakeholder communications will also be key milestones.
For now, investors and industry watchers will be looking for more details on how the assets and liabilities will be divided, what the capital structures will look like, and how each company plans to compete in its respective arena. Warner Bros. Discovery’s decision to separate into a streaming and studios company and a global networks company marks a significant shift in the media landscape.
