Warner Bros. Discovery has announced a bold restructuring plan to divide its operations into two standalone companies, a move set to reshape its business strategy and market engagement. The announcement, made on June 9, 2025, signals a significant shift in the company’s approach to the evolving media and entertainment landscape.
The reorganization is aimed at creating operational clarity and strategic focus. One company will focus exclusively on the booming streaming and studio content sectors, while the other will oversee global networks including CNN, TNT Sports, and other cable holdings. This separation intends to unlock shareholder value, streamline decision-making, and tailor each company’s goals to their specific audiences and challenges.
The split will result in the creation of two distinct publicly traded entities:
Streaming & Studios Entity
This segment will encompass high-profile content and distribution assets including Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. With the growth of subscription-based streaming platforms and original content demand, this division is poised to innovate in content creation, global distribution, and digital media engagement.
Global Networks Entity
The second company will manage legacy media assets including CNN, TNT Sports, Discovery, and the Discovery+ streaming platform. Despite facing declining cable subscriptions, these brands retain significant influence through live programming, sports broadcasting, and international reach. The standalone structure is expected to provide renewed focus on modernizing these channels and expanding digital accessibility.
David Zaslav, the current CEO of Warner Bros. Discovery, will lead the Streaming & Studios entity. His experience in steering Discovery through major mergers and his focus on content-led growth make him a natural fit for this leadership role. Gunnar Wiedenfels, currently the Chief Financial Officer, will assume the role of CEO for the Global Networks business. Known for his strategic acumen and cost optimization expertise, Wiedenfels is expected to drive transformation within the traditional broadcasting space.
The restructuring is expected to be finalized by mid-2026, subject to board approval and regulatory review. The companies will operate independently, each with its own board, leadership team, and strategic priorities. Existing shareholders of Warner Bros. Discovery will receive shares in both entities, aligning financial interests with the future success of each business.
The decision to divide the company follows a period of increasing scrutiny from shareholders, particularly concerning executive compensation packages. A recent advisory vote revealed shareholder dissatisfaction with pay scales, including CEO David Zaslav’s reported annual compensation exceeding $50 million. By restructuring the company, Warner Bros. Discovery aims to improve financial transparency and align compensation with measurable performance.
The move also reflects broader industry trends. Media conglomerates are increasingly facing pressure to adapt to digital consumption habits, diversify revenue streams, and address the decline in traditional television viewership. By isolating streaming and legacy media operations, Warner Bros. Discovery positions itself to respond nimbly to shifting consumer behavior and technological advancements.
Market analysts view the split as a strategic effort to simplify business operations and focus capital investment. The Streaming & Studios company will likely prioritize expanding content libraries, investing in new technologies, and global market penetration. Meanwhile, the Global Networks entity will concentrate on stabilizing broadcast revenues and innovating in live news and sports programming.
Investors responded positively to the announcement, with Warner Bros. Discovery shares rising nearly 9% in the hours following the news. The uptick signals confidence in the leadership’s vision and the potential value creation from this corporate restructuring.
Employees within the company are expected to experience minimal disruption in the short term, as operational changes will be rolled out gradually. Internal communications have emphasized continuity and collaboration during the transition process. Leadership teams in both entities have committed to maintaining transparency and support for staff throughout the transformation.
Looking ahead, the split could set a precedent for other media giants contemplating similar moves. As industry dynamics continue to shift, strategic realignment may become a necessary step for legacy players to remain competitive in a digital-first environment.
Warner Bros. Discovery’s restructuring marks a defining moment for the company, reinforcing its commitment to innovation and adaptability. By embracing change and realigning its assets, the media titan hopes to capture new growth opportunities and enhance shareholder value in a rapidly evolving entertainment ecosystem.
