Warner Bros Discovery, the parent company of HBO Max and CNN, has announced plans to separate its streaming and studio operations from its traditional cable television networks. This significant restructuring is set to be completed by mid-2026 and marks a major strategic pivot as the company adjusts to changing consumer preferences in the media landscape.
The new split will result in two separate entities. One, named Streaming & Studios, will include HBO Max, the company’s film division, and hit content such as Succession, The White Lotus, and The Last of Us. Warner Bros Discovery CEO David Zaslav will lead this unit. The second entity, Global Networks, will encompass traditional cable properties like CNN, Discovery, and TNT Sports, and will be headed by current Chief Financial Officer Gunnar Wiedenfels.
Zaslav described the move as an opportunity to give both divisions “sharper focus and strategic flexibility” in order to adapt more effectively to the fast-changing media landscape.
Market Reactions and Strategic Context
The announcement did not immediately boost investor confidence. Warner Bros Discovery shares dropped nearly 3% on Monday and are down over 10% for the year. Despite the tepid market response, analysts view the split as a step toward greater transparency and value clarity for stakeholders.
Peter Jankovskis, an analyst at Arbor Financial Services, noted that breaking up the company could help investors better understand the distinct strengths and financial health of each new business. “When you make the business less complicated, analysts can do a better job of determining what the business is actually worth.”
The breakup follows a growing trend in the media industry, where companies are increasingly dividing their content and distribution operations to unlock value and better respond to digital disruption. Comcast, for example, began a similar restructuring last year, spinning off MSNBC and CNBC from its Peacock streaming service.
Streaming Soars as Cable Struggles
The shift reflects the diverging fortunes of the company’s two main areas. Warner Bros Discovery’s streaming platforms reported a strong performance in the first quarter of 2025, ending the period with over 122 million global subscribers. Streaming continues to attract massive audiences worldwide and remains a key area of growth for media companies.
In contrast, traditional cable operations have faced declining viewership. CNN, one of the company’s flagship news channels, averaged just 558,000 primetime viewers in early 2025, a 6% drop from the previous year. In response, CNN laid off more than 200 employees in January as it redirected efforts toward its digital strategy.
The planned split is seen as a move to protect and grow the more dynamic segments of the company while allowing the cable business to focus on its core challenges. With streaming gaining momentum and cable networks facing ongoing pressure, Warner Bros Discovery hopes this bold reorganization will position both companies for long-term success in an increasingly digital world.
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