New York: Warner Bros. Discovery announced on Monday that it will separate into two publicly traded companies by mid-2026, effectively undoing much of the 2022 merger that brought together WarnerMedia and Discovery.
The media giant said one company will comprise its cable networks, including CNN and TNT Sports, and will be led by current CFO Gunnar Wiedenfels under the name Global Networks. The second entity, focused on streaming and studios — including HBO Max and Warner Bros. Television — will be headed by CEO David Zaslav, who will retain his current role.
The strategic split comes amid mounting pressure on traditional cable networks, which have seen declining viewership due to the ongoing shift to streaming platforms. Warner Bros. Discovery shares have dropped over 60% since the merger closed more than three years ago.
“This separation will allow each business to pursue important investment opportunities and drive shareholder value,” Wiedenfels said in a statement.
As part of the move, the company will double down on growing its streaming footprint. HBO Max, currently available in 77 markets, is projected to reach 150 million subscribers by the end of 2026.
Despite strength in streaming, the studio business has been underperforming, with revenue down 18% year-over-year in Q1. Overall revenue for the company fell 9% to $9 billion in the same period, according to its latest earnings report.
The announcement follows an internal restructuring unveiled in December. Shares of Warner Bros. Discovery rose 10.7% in early trading on Monday, bringing its market value to $24.3 billion.
