Warner Bros. Discovery to Split into Two Independent Companies by 2026

Warner Bros. Discovery has announced plans to divide its business into two separate publicly traded companies, marking a significant shift aimed at giving each segment greater strategic independence. The split, set to take effect by mid-2026, will separate the company’s streaming and studio operations from its traditional television networks.

Under the proposed structure, the first entity – temporarily named “Streaming & Studios” – will house the HBO Max streaming platform and Warner Bros. film and TV studios. This arm will be overseen by current CEO David Zaslav. The second company, “Global Networks,” will encompass CNN and other linear television networks, and will be led by Chief Financial Officer Gunnar Wiedenfels.

“This evolution isn’t a departure from our strategy,” Zaslav told employees in a memo. “It’s about unlocking the full potential of two strong businesses, each with a distinct focus and the scale to succeed on its own terms.”

The decision follows increasing pressure from investors and reflects a broader industry trend as legacy media companies adapt to a digital-first future. While the streaming sector continues to show growth potential, traditional cable TV is facing steady decline. By creating a standalone streaming and studios company, Warner Bros. Discovery aims to allow investors to back the high-growth HBO Max business without being tied to the more mature cable division.

Despite the challenges facing traditional television, the Global Networks arm remains profitable and maintains a substantial international footprint.

The move comes just three years after the high-profile merger between Discovery and the former Time Warner. Since then, Warner Bros. Discovery’s stock has struggled, losing roughly half its value. News of the split sent shares up over 10% in premarket trading on Monday.

While details of the split are still being finalised, the restructuring process over the past six months had signaled the possibility of such a move. Rival Comcast is also currently reconfiguring its operations, though through a different method involving the spinoff of cable assets.

Warner Bros. Discovery’s split signals yet another chapter in the fast-evolving media landscape, as companies reshape themselves to better align with streaming-era realities.