NEW YORK — Warner Bros Discovery, the media giant behind HBO and CNN, announced plans on Monday to split into two separate companies by mid-2026. The decision marks a major shift in strategy as the industry grapples with falling cable viewership and fierce competition in streaming.
The move will see the firm’s studios and streaming platforms including HBO Max and the Warner Bros film division operate as one business, while its legacy cable channels like CNN, Discovery, and TNT Sports form another.
David Zaslav, president and chief executive of Warner Bros Discovery, said the split would allow each unit to “compete most effectively in today’s evolving media landscape.”
The new Streaming & Studios company will be led by Zaslav himself, while the cable-focused Global Networks arm will be headed by chief financial officer Gunnar Wiedenfels.
A Tale of Two Futures
Streaming has been the company’s bright spot. With hit series such as Succession, The White Lotus, and The Last of Us, HBO Max has drawn more than 122 million subscribers globally. The appetite for original programming and on-demand viewing continues to rise.
By contrast, traditional cable television is struggling. CNN, once a ratings powerhouse, has seen its audience dwindle. In the first quarter of this year, the network averaged 558,000 primetime viewers a 6 percent drop from the same period in 2024.
In January, CNN cut over 200 jobs in a push to strengthen its digital services, signalling where it believes its future lies.
Market Reaction and Investor Clarity
Despite the bold restructuring, the market response was lukewarm. Warner Bros Discovery shares fell nearly 3 percent on Monday, extending a 10 percent slide this year.
Some analysts, however, say the move could help clear up confusion about the company’s true value. “When you make the business less complicated, analysts can go in and do a better job of determining what the business is actually worth,” said Peter Jankovskis, chief strategist at Arbor Financial Services, speaking to the media.
This simplification follows a pattern seen elsewhere in the media world. Comcast, for instance, began spinning off its NBCUniversal cable division last year to separate it from its streaming service, Peacock.
“It’s a very competitive market right now,” Jankovskis added. “Many firms are splitting off their content or streaming arms so each part of the business can be valued on its own merits.”
After the Merger, a Separation
The announcement comes just three years after Warner Bros and Discovery merged to form the current conglomerate. At the time, the merger was seen as a bid to pool resources and take on industry heavyweights like Netflix and Disney.
But as viewing habits evolve and cable networks struggle to keep pace, the company now appears to be reversing course.
Whether the split will deliver long-term gains remains to be seen. But for now, Warner Bros Discovery is betting that a sharper focus and simpler structure will give each side of its business a fighting chance in a fast-changing media world.
