Warner Bros. Discovery set to split into two companies

Warner Bros. Discovery (WBD), the corporate parent of CNN and one of the largest media conglomerates in the country, plans to split its business into two public companies as part of a larger effort to rectify its lingering financial issues.

The decision, announced Monday, would split WBD into two entities.

Streaming and Studios will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max.

The second company, Global Networks, will include Warner Bros. Discovery’s entertainment, sports and news television brands around the world including CNN, TNT Sports and Discovery.

Monday’s move comes on the heels of massive Wall Street losses WBD has taken on its linear broadcast television assets in recent quarters while it pours millions into streaming platforms and digital content offerings.

David Zaslav, WBD’s top executive, suggested in a statement on Monday the split was necessary for the well-being of the company’s shareholders and hinted that more changes to how the companies operate are coming.

“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” he said.

The media conglomerate was formed in 2022 when Warner Bros. and Discovery merged, a deal worth more than $40 billion at the time that signaled major change across the news, sports and entertainment business.

Since the merger, WBD, like many large media companies, has faced financial headwinds due to dwindling advertising revenue on broadcast television and subscriber losses with more consumers cutting cable in favor of streaming platforms.

The company recently lost out on the latest round of broadcast rights for NBA games and earlier this year announced it was re-branding its streaming service MAX back to HBO Max.

Monday’s announced split is expected to be completed by the end of 2026.