Warner Bros. Discovery will divide into two public companies by the middle of 2026 as the company tries to adjust to a changing media world where viewers are leaving cable for streaming platforms. CEO David Zaslav will lead the new streaming and studios company which will include HBO Max and the Warner Bros. film division. 

The new global networks company will be led by current CFO Gunnar Wiedenfels and include CNN TNT Sports and Discovery Channel. The decision follows a long restructuring process that many saw as a sign that the split was coming. Zaslav said each new company will be better able to focus on its mission and respond faster to changes in the media market.

Debt Will Be Divided As Companies Pursue Separate Growth Paths

The company currently holds nearly $34 billion in net debt after already paying off $19 billion since its 2022 merger. That debt will be divided between the two companies with the larger portion staying with global networks. Wiedenfels said the networks unit will remain cash strong and will focus on paying down debt further. WBD is not alone in this strategy as Comcast has also announced plans to spin off its cable networks into a new company. 

“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,” said Zaslav.

This shows a clear shift in the industry as media firms try to break apart traditional TV from their newer digital services. While live sports still bring big audiences to traditional TV the company admitted that sports have not driven much success on streaming platforms. Executives confirmed that both companies will have the flexibility to explore future deals even if that means giving up tax-free benefits.