On Monday, Warner Bros. Discovery declared their intention to divide into two separate entities. This move aims at strengthening their position in the streaming market while simultaneously enhancing the worth of traditional news and entertainment offerings.
The massive entertainment corporation plans to split into two independently listed entities: one focused on "Streaming & Studios" and another on "Global Networks." This restructuring aims to allow each division to reach its full potential. According to the firm, this transition is anticipated to conclude by mid-2026.
This shift, involving the redistribution of assets like HBO Max and CNN, underscores how streaming services are reshaping an industry where companies such as Warner Brothers Discovery once earned significant income from traditional bundled cable packages. Many consumers are increasingly opting for individual streaming options rather than these packaged deals.
Streaming & Studios will incorporate the catalogs from HBO and Warner Bros., along with studio production facilities located in both California and Britain, as well as various tours and experiences. According to the company’s statement, this initiative aims at expanding HBO Max, which currently operates across 77 territories.
Global Networks will accommodate Discovery, along with CNN and TNT Sports, renowned for their live event coverage. This collection of assets presently reaches an audience of 1.1 billion people spanning 200 countries and regions.
The CEO of Warner Brothers Discovery, David Zaslav, will oversee streaming operations, whereas the company’s CFO, Gunnar Wiedenfels, will be responsible for managing global networks.
"Through our approach of functioning as two separate and specialized entities moving forward, we are enabling these legendary brands with increased concentration and tactical adaptability required to thrive competitively within the dynamic media environment of today," stated Zaslav.
Warner Brothers Discovery shares jumped by 10.3 percent during the early hours of trading.
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