Warner Bros Discovery announced on Monday that it will divide its operations into two independent companies which will separate its cable networks from its streaming and studios operations. The media industry faces an ongoing crisis because of the continuous trend of consumers abandoning traditional cable subscriptions.
The new streaming-and-studios company will operate HBO, HBO Max, DC Studios and Warner Bros film and television divisions. The networks unit will contain CNN together with TNT Sports and Bleacher Report and Discovery’s European free-to-air channels.
The opening market performance of Warner Bros Discovery stock increased by 11%. The streaming and studios division will be led by CEO David Zaslav while CFO Gunnar Wiedenfels will oversee the networks business. The separation process will reach its completion during the middle of 2026.
The decision demonstrates the difficulties traditional cable networks face because people prefer streaming services over traditional television. The decision reverses certain aspects of the WarnerMedia and Discovery merger from 2022 to enable both businesses to concentrate on their individual operations.
