Warner Bros. Discovery Splits Streaming From Cable TV

Warner Bros Discovery is planning to split into two separate publicly traded companies by mid-2026. One company will focus on studios and streaming assets, including Warner Bros, DC Studios, and HBO Max, while the other will focus on declining cable networks, including CNN and TNT Sports. This move unwinds the 2022 WarnerMedia-Discovery merger and is part of the unraveling of decades of media consolidation. The streaming-and-studios company will be led by CEO David Zaslav, while the networks unit will be headed by Gunnar Wiedenfels. The separation will be structured as a tax-free transaction. The networks unit will hold up to a 20% stake in the streaming-and-studios company. Most of the company's debt, which stands at $38 billion, will be held by the global networks company. The company has secured a $17.5 billion loan from J.P. Morgan to restructure its debt. CEO David Zaslav stated that the move is the right path forward, given the evolving industry. The separation is expected to be completed by mid-2026.