Warner Bros. Discovery will separate into two independent, publicly traded companies by mid-2026, the media giant announced on Monday.
The split creates a Streaming & Studios division and a Global Networks business.
David Zaslav, whose 2024 compensation of $51.9 million recently faced investor criticism, will continue as chief executive of the Streaming & Studios company. Gunnar Wiedenfels, currently chief financial officer of WBD, will lead the Global Networks division in the same capacity.
"The decision to separate Warner Bros. Discovery reflects our belief that each company can now go further and faster apart than they can together," Zaslav told Wall Street analysts during Monday's call.
The future of sports programming remains unclear within the new structure. TNT Sports will sit within Global Networks, but many of its premier events currently stream on Max, which will revert to its HBO Max branding this summer.
TNT Sports has an uncertain future following a split in their parent company
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"The US sports rights will reside at Global Networks, and its management team will determine the streaming and digital rights over time," Wiedenfels explained.
Zaslav noted that in America, sports "hasn't been a real driver" for streaming consumption on Max.
Despite this uncertainty, WBD celebrated strong viewership from its inaugural French Open coverage, including Sunday's five-set men's final between Carlos Alcaraz and Jannik Sinner. The company subsequently extended its European rights to the tournament through 2030.
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The Streaming & Studios division will house Warner Bros. Discovery's most valuable intellectual property, including film and television productions, DC Studios, HBO, HBO Max, and the company's extensive film and TV libraries.
This entity will focus on the company's streaming future.
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TNT Sports is the go-to channel for European football in the UK
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Global Networks will comprise TNT Sports in the United States, Bleacher Report, CNN, Discovery, and free-to-air channels across Europe. This division will retain the more traditional linear television assets.
The separation follows a similar strategy to Comcast's recent spin-off of its cable networks into an entity called Versant. The move aims to shield the streaming-focused business from the ongoing decline in traditional television viewership caused by cord-cutting.
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The financial rationale centres on reversing WBD's share price decline of nearly two-thirds since the 2022 merger between AT&T's Warner Media and Discovery Communications. The separation aims to unlock shareholder value by creating two distinct entities with different growth trajectories.
Global Networks will inherit most of Warner Bros. Discovery's current debt burden. However, it will retain up to a 20 per cent stake in the Streaming & Studios business, using earnings from this holding to pay down that debt.
TNT Sports owns the rights to broadcast a number of Premier League games in the UK
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Whilst Global Networks generates more consistent profits currently, it faces greater long-term challenges from the fundamental reshaping of linear television. The streaming-focused entity, meanwhile, will be positioned for future growth without the weight of traditional TV's decline.
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