Warner Bros Discovery 2025 Split: Streaming & Studios to Break Off from Cable in Landmark Media Shake-Up

Warner Bros. Discovery (WBD) confirmed today that it will divide its vast entertainment empire into two separately traded companies—one housing its streaming and studio assets, the other its traditional cable networks—in a move executives say will “unlock growth and sharpen strategic focus” across an increasingly fragmented media landscape. Streaming & Studios Co. The new streaming-centric entity will bundle Max, discovery+, and the company’s film and television studios—including Warner Bros. Pictures, DC Studios, New Line, and Warner Bros. Television—under one roof. By aligning direct-to-consumer platforms with the content engines that feed them, WBD believes it can accelerate subscriber growth, boost franchise output, and better leverage intellectual property from Harry Potter to Game of Thrones. Executives indicated that the streaming unit will continue its global rollout while fast-tracking ad-supported tiers to entice price-sensitive viewers. Global Networks Co. The second company will operate legacy cable brands such as CNN, TNT, TBS, Discovery Channel, HGTV, and Food Network. Management argues that carving out these cash-generating networks allows them to focus on news, sports, and lifestyle programming without competing internally for budget with high-burn streaming initiatives. The networks division is expected to prioritize distribution renewals, live-event rights, and free ad-supported streaming channels (FAST) to extend audience reach. Why the Split Now? • Debt Pressure: WBD still carries roughly $42 billion of debt tied to the 2022 Discovery–WarnerMedia merger. Separating the balance sheets gives each company clearer capital-allocation options and could pave the way for targeted M&A or equity raises. • Investor Clarity: Cable cash flow and streaming subscriber metrics pull the stock in opposite directions. Stand-alone entities let investors value mature linear TV assets on yield while assigning growth multiples to streaming. • Regulatory Simplicity: Executives say the two-step deal structure—expected to close by mid-2026, pending shareholder and regulatory approvals—avoids antitrust hurdles because no external party is acquiring assets. Market Reaction WBD shares surged more than 7 percent in pre-market trading on the announcement, signaling shareholder enthusiasm for a cleaner story and potential unlock of hidden value. Analysts at Bank of America estimate the streaming unit alone could command a valuation similar to Netflix on a price-to-subscriber basis if it meets its 2027 target of 200 million global users. What It Means for Consumers • Max subscribers should see no immediate changes; the service will remain the flagship platform. However, management teased more bundled pricing options once the split is finalized. • Cable viewers can expect renewed focus on live news and sports at CNN and TNT, while lifestyle networks ramp up interactive and e-commerce extensions. • Theatrical releases—from Joker: Folie À Deux to the next installment of The Batman—will still hit cinemas first, then migrate to Max once exclusive windows expire. Leadership & Governance Current CEO David Zaslav will oversee both businesses through the transition but is expected to lead the streaming-studio company post-spin. A separate board and CEO will be named for the Global Networks company. The headquarters for both entities will remain in New York, with major production hubs in Burbank, London, and Atlanta. The Bottom Line By unbundling its streaming ambitions from its cable stalwarts, Warner Bros. Discovery is betting that two focused pure-plays are better equipped to compete against tech giants, pure-streamers, and legacy broadcasters alike. Investors, advertisers, and fans will be watching closely as the entertainment powerhouse enters its next act.