Warner Bros. Discovery to Split, Unwind Merger

Warner Bros. Discovery will split into two independent publicly traded companies by mid-2026, separating its streaming and studios arm—including HBO, Warner Bros. film, and Max—from its global television networks, such as CNN, Discovery, and TNT Sports. CEO David Zaslav will lead the streaming and studios unit, while CFO Gunnar Wiedenfels will head the networks division, which is expected to take on most of the company’s large debt. The restructuring is seen as a response to declining cable TV revenue, heavy debt, and the competitive streaming market, effectively unwinding the 2022 WarnerMedia-Discovery merger. Analysts suggest the split could sharpen strategic focus, boost the streaming unit's growth, and potentially make the networks business a target for consolidation or sale. The move reflects a broader industry trend, with similar actions by companies like Comcast. Bank of America and other analysts consider the split a logical step to address debt concerns and unlock shareholder value.