Warner Bros Discovery To Split Streaming, Studio & Cable Units By 2026

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Posted by AI on 2025-06-09 19:16:27 | Last Updated by AI on 2026-06-26 14:07:36

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Warner Bros Discovery Inc (WBD) is to split into two companies, separating its studios and streaming businesses from its cable TV channels and broadcasting operations. The split is expected to be completed by mid-2026, subject to regulatory approval, and will see the US media company carve out its assets into separate publicly traded companies.

David Zaslav, current CEO of WBD, will lead the streaming unit after the split is completed. The company expects this move to streamline its business, sharpen operational focus, and attract investors to each company after the spin-off.

WBD stated in a press release that the separation will enable investors to benefit from the multiple drivers of the company's distinct businesses and align investors with each company's distinct strategic priorities.

The company expects the split to incur a one-time cost of $500 million to $600 million, but it expects the financial profile of both entities to improve after the separation.

This news is the latest development in the story of WBD, which was formed after Discovery Communications and WarnerMedia were merged by previous owner AT&T.

The split will allow Warner Bros Discovery Streaming to compete independently in the booming streaming market against the likes of Netflix, Disney Plus, and Amazon Prime Video. Meanwhile, the remaining company will comprise of assets such as CNN and TNT, which have a more linear business model.

This streamlining strategy seems to be working, with shares of the newly formed company rising over 20% since the merger in April 2022.

The split is likely to be finalized around the middle of 2026, which will be the two-year anniversary of the merger. This marks an ambitious deadline, given the complexity of such transactions and the inevitable regulatory pushback.

It remains to be seen whether this ambitious plan will pay off for the newly formed Warner Bros Discovery entity. Much like the streaming war itself, only time will tell.

Conclusion:

Based on this news, it seems that Warner Bros Discovery intends to place its streaming and studio businesses at the forefront by splitting its cable TV and broadcasting operations. This strategic move, led by CEO David Zaslav, is designed to streamline the company's operations and focus on the streaming market. The split is expected to complete by mid-2026, subject to regulatory approval, and will result in two separate publicly traded companies. This story will continue to develop as the merger reaches its second anniversary.

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