WBD Hoping Two Entities Will Be More Valuable

Warner Bros. Discovery (WBD) is dividing into two independent, publicly traded entertainment companies, separating its HBO Max streaming service, film studio, and TV production from its cable networks, according to The Wall Street Journal.

One company, tentatively named Global Networks, will encompass CNN, TNT, TBS, and Warner’s numerous cable channels, plus international operations. It will hold up to a 20% stake in the second company, called Streaming & Studios, using profits from this stake to reduce debt. 

The second entity, which Warner is referring to as Streaming & Studios. It plans to use earnings from that stake to pay off debt.

This restructuring largely reverses the 2022 Warner Bros. and Discovery Communications merger, splitting Warner’s premier film and scripted TV assets from Discovery’s reality and nonfiction content.

Like Disney and Paramount Global, Warner has faced declining ratings and revenue in its cable business as consumers shift from traditional pay-TV to streaming. Comcast is similarly spinning off most of its cable operations into a new company, Versant, expected to be finalized by the end of 2025. 

Warner believes its separated entities will be more valuable than the combined company, allowing it to compete with streaming giants like Netflix and Amazon Prime Video, which lack legacy cable burdens. In late 2024, Warner announced plans to reorganize into two divisions. On Monday, June 9, 2025, it stated the split would enhance shareholder value and enable each company to adapt swiftly in the evolving media landscape. 

David Zaslav will continue as CEO of Streaming & Studios, while CFO Gunnar Wiedenfels will lead Global Networks as its CEO.