Warner Bros. Discovery said Monday it will spin off its cable channels into a new company and keep its film, television and streaming operations under a separate banner called Streaming & Studios, creating two publicly traded firms by mid-2026. The action reverses part of the 2022 merger that married WarnerMedia and Discovery and comes as cord-cutting accelerates and debt pressures mount.
Streaming & Studios will house Warner Bros. Motion Picture Group, HBO, HBO Max, DC Studios and the company’s vast library, while Global Networks will manage CNN, TNT Sports, Discovery’s lifestyle brands and free-to-air channels across Europe. Chief Executive David Zaslav will lead the content-centric business, and Chief Financial Officer Gunnar Wiedenfels will become CEO of Global Networks; both keep current roles until the split closes.
Zaslav told employees the separation will let each side “operate with sharper focus and more flexibility,” while Wiedenfels said the network unit will “work hand-in-glove with distributors to maximize reach.” Analysts have long argued the cable portfolio is a drag on valuation; Bank of America’s Jessica Reif Ehrlich called it a “logical partner” for Comcast’s forthcoming cable spin-off. The move tracks a broader industry retreat from vertically integrated empires built during the streaming land-grab.
To prepare, WBD launched tender offers for up to $14.6 billion of notes, funded by a $17.5 billion bridge loan from J.P. Morgan, and said Global Networks may retain as much as a 20 percent stake in the new studio-streaming entity. S&P Global recently cut the company’s rating to BB+, citing revenue erosion and heavy leverage, while shareholders last week rejected Zaslav’s $51.9 million pay package.
Shares rose nearly 9 percent after the announcement, adding to a rally sparked by weeks of breakup speculation. Supporters say the deal could unlock growth for a studio group competing with Netflix and Disney+, yet skeptics warn the networks arm faces structural decline and could struggle as an independent issuer with significant debt.
