[Photo Credit to Kamyar Shah]

On June 9, 2025, Warner Bros. Discovery announced a major corporate split that will divide its entertainment and media assets into two separate companies.

This decision marks a strategic pivot aimed at streamlining operations by consolidating studio and streaming content under Warner Bros., while placing its news and sports divisions within a newly established entity, Discovery Global. 

The restructuring is projected to be finalized by mid-2026, just three years following the merger of WarnerMedia and Discovery, Inc. 

This split reverses that consolidation and incorporates transforming industry priorities in response  to declining linear television revenues and increasing demand for digital content. 

Under the new organizational framework, Warner Bros. will oversee all content-driven businesses, including Warner Bros. Pictures, Warner Bros. Television, DC Studios, HBO, HBO Max, and video game assets. 

Meanwhile, Discovery Global will manage the company’s linear cable networks and information platforms, including CNN, TNT Sports, the Discovery Channel Discovery+ and Bleacher Report

Current Warner Bros. Discovery CEO David Zaslav will lead the redefined Warner Bros., while Chief Financial Officer Gunnar Widenfels is set to take the control of Discovery Global. Both companies have already begun recruiting leadership teams to support the transition. 

Warner Bros. is currently seeking a new CFO and Chief People Officer, while Discovery Global is expected to appoint a Chief Communications and Public Affair Officer. 

According to company statements, the separation is designed to enable each business to focus on its core markets and target audiences. 

Executives emphasized that the distinct operational models of scripted entertainment in comparison to live news and sports require specialized strategies, which they believe that two independent companies will be better positioned to execute. 

Industry analysts have observed that the move may help Warner Bros. reduce the financial costs of legacy cable networks, allowing its streaming and content divisions to grow with extensive investments. 

As of March 2025, Warner Bros. Discovery reported over 122 million streaming subscribers, following global leaders like Netflix and Prime Video but remaining a formidable player in the market. 

The split will involve the redistribution of company debt, with Warner Bros. assuming  a smaller share of estimated $30 billion liability. 

This could give the studio centric company greater flexibility in budgeting for original content and expansion of international partnerships. 

Meanwhile, Discovery Global is expected to prioritize monetizing live and factual programming, retaining reliable revenue streams through advertising and cable subscriptions. 

In particular, the inclusion of CNN and TNT Sports positions the new entity to capitalize on demand for news and sport broadcasting, especially in international markets. 

The Warner Bros. Discovery split mirrors similar reconstructing efforts by major competitors like Comcast, which is preparing to spin off its cable assets under a separate brand. 

These moves signal a profound transformation in the global media industry as companies seek to adapt to dispersed groups of audiences, streaming competition and evolving investor expectations. 

If successful, the reorganization could serve as a model for other hybrid media companies to balance between legacy assets and digital growth.