The restructuring aims to streamline operations by separating its streaming and studios business from legacy cable networks.
Warner Bros. Discovery (WBD) has announced a significant corporate restructuring that will see the media giant divided into two independent companies – one focused on studios and streaming, and the other managing its traditional cable television networks. The tax-free split is expected to be finalized by mid-2026.
This strategic move represents a shift away from the era of massive media conglomerates, as WBD seeks to respond more effectively to the fast-changing demands of the entertainment industry. The new structure is designed to give each business unit greater focus and operational flexibility.
The newly formed studios and streaming company – which will include flagship brands such as HBO and Max – will be led by current CEO David Zaslav. Meanwhile, the global networks division, which encompasses legacy cable channels including CNN, will be overseen by CFO Gunnar Wiedenfels.
“By creating two purpose-built companies, we’re enabling sharper focus and greater strategic agility for each unit,” said Zaslav. “This structure allows us to better position our iconic brands for long-term growth in an evolving media environment.”
To support the transition, WBD has initiated a debt restructuring process, backed by a $17.5 billion bridge loan secured through J.P. Morgan. The company plans to refinance the loan ahead of the split.
As part of the arrangement, the global networks entity will hold up to a 20% minority stake in the new studios and streaming company – a share WBD intends to monetize over time to further reduce debt.
The breakup underscores WBD’s commitment to adapting to consumer trends, especially the growing dominance of streaming, while also addressing the challenges facing traditional broadcast and cable media.
