Warner Bros. Discovery (WBD) has announced plans to separate the company into two separate firms. One will concentrate on its streaming and studio business, and the other will attempt to revive its lagging cable TV operation.
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Warner Bros. Discovery's film division and HBO Max, the prestige streaming platform, will be part of a new Streaming & Studios business.
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The other new firm will be called Global Networks and will feature entertainment, sports, and news television brands, including CNN, TNT Sports in the US, and Discovery.
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CNN only averaged around 560,000 viewers during primetime hours in Q1 this year, 6% lower than the same period in 2024.
The company’s film division and HBO Max, the prestige streaming platform boasting titles like The Last of Us, The White Lotus, and Succession, will be part of a new Streaming & Studios business.
The other new firm will be called Global Networks and will feature entertainment, sports, and news television brands, including CNN, TNT Sports in the US, and Discovery.
“Enhanced strategic focus and flexibility will better position storied brands across entertainment, sports, and news to drive shareholder value,” said Warner Bros. Discovery in a press release.
The move comes as streaming services such as Netflix, Disney+, or HBO Max are booming and attracting hundreds of millions of users worldwide.
Cable TV, on the other hand, has been struggling in recent years, at least in the US. CNN, WBD’s flagship news channel, has been losing viewers every year.
CNN only averaged around 560,000 viewers during primetime hours in Q1 this year, 6% lower than the same period in 2024. In January, the network also announced it was laying off more than 200 employees.
WBD’s streaming product has turned over almost $3 billion in only two years, the company had said after reverting the platform’s name from Max to its original title HBO Max. The company’s platforms ended Q1 with more than 122 million subscribers.
“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” said David Zaslav, president and CEO of WBD.
Zaslav will now serve as president and CEO of Streaming & Studios. WBD’s chief financial officer, Gunnar Wiedenfels, will head Global Networks. The split should be finalized by mid-2026.
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