Warner Bros. Discovery (NASDAQ: WBD) has unveiled plans to carve itself into two standalone, publicly traded companies in a tax-free transaction designed to sharpen strategic focus and unlock shareholder value (wbd.com).
The first, Streaming & Studios, will unite Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max (including its sports offering), Warner Bros. Games, Tours, Retail & Experiences, and studio facilities in Burbank and Leavesden. David Zaslav—currently President & CEO of WBD—will continue at the helm of this new powerhouse, aiming to scale HBO Max into new markets and push the studio back toward its $3 billion EBITDA target (wbd.com).
The second company, Global Networks, will house CNN, TNT Sports, Discovery Channel, top free-to-air European networks, Discovery+, Bleacher Report and other digital properties that together reach 1.1 billion viewers in 68 languages across 200 territories (wbd.com). Gunnar Wiedenfels—WBD’s current CFO—will become Global Networks’ CEO, focusing on maximizing free cash flow, deepening sports and news offerings, and forging stronger distribution partnerships.
Zaslav emphasized the separation’s purpose: “By operating as two distinct and optimized companies…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” (wbd.com). Wiedenfels added that the split will allow each business to pursue tailored investment opportunities and financial profiles, with Global Networks retaining up to a 20 percent stake in Streaming & Studios to support its de-leveraging plan.
Investors responded with enthusiasm: WBD shares jumped as much as 13 percent intraday following the announcement, though gains later moderated to around 5 percent (marketwatch.com). Analysts note the move mirrors trends at Comcast and Paramount in isolating high-growth streaming assets from declining linear networks, but caution that the debt-heavy Streaming & Studios arm will need robust content hits to justify its valuation (barrons.com).
With regulatory approvals and IRS tax-free opinions pending, the twin companies are expected to stand up by mid-2026 (wbd.com). Hollywood and Wall Street alike will be watching closely as two new empires rise, each armed with legacy brands and bold mandates to win in streaming, film, news and sports.
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