Three years after the merger, Warner Bros. discovered that it was divided into two companies
Three years after creating Warner Bros. Discovery in a high-profile merger between Warnermedia and Discovery Inc., the media giant is breaking up. The company announced today (June 9) that it will be divided into two publicly traded entities: one focused on streaming and studios and the other focused on wired networks. The move reflects a wider industry shift as traditional television networks continue to decline.
WBD CEO David Zaslav, formerly Helmed Discovery Inc., will lead new streaming and studio companies including HBO Max, Warner Bros. Film Group and DC Studios. WBD's current chief financial officer, Gunnar Wiedenfels, will be responsible for the newly formed global networking business, which will cover CNN, TNT Sports and Discovery. Following the merger, Wiedenfels has been monitoring the financial status of WBD since 2022. The spin-off is expected to end in mid-2026, pending approval by the board of directors.
“Three years later, it's time to make bold choices to reach the next stage,” Zaslav told analysts today. “Now, every company can be faster and faster than they are together. Sometimes distributors just want HBO Max, and we ended up having a long negotiation trying to bundle more products. Sometimes, sometimes others just want a free live stream or a linear service.”
WBD has not announced the names of the two spin-off entities. What we know is that streaming and studio companies will focus on their efforts to expand HBO Max, which is now available for sale in 77 markets, with another rebrand recently. According to Zaslav, the platform is expected to exceed 150 million subscribers by the end of next year.
The newly formed global network company includes assets of 1.1 billion viewers in nearly 70 languages in 200 countries. “We will focus on identifying innovative ways to work with distribution partners to create value for a global linear and streaming audience while maximizing our network assets and driving free cash flow,” Wiedenfels said in a statement.
The announcement reflects a larger shift in the media industry as traditional cable networks continue to lose relevance in the streaming era. In November 2024, Comcast revealed plans to rotate its wired network to independent companies and focused on brands like NBC and Bravo. WBD has already suggested a similar intent to reorganize its business into separate streaming and linear network units last year.
