Warner Bros. Discovery to Split in Two: Cable and Streaming Go Their Separate Ways

By AP — June 10, 2025

In a major shakeup aimed at keeping pace with the fast-changing media landscape, Warner Bros. Discovery announced plans to split into two separate companies—one focused on traditional cable, the other on streaming and studio content.

The move comes as more viewers ditch cable in favor of streaming platforms, accelerating a long-term trend known as “cord-cutting.” It’s a sign that even entertainment giants are being forced to rethink how they do business.

What’s Changing?

Under the plan, Warner Bros. Discovery will spin off its cable operations into one company and bundle its streaming and studio assets into another.

• Streaming & Studios Co.: This new entity will include major brands like HBO, HBO Max, Warner Bros. Television, Warner Bros. Motion Picture Group, and DC Studios.
• Global Networks Co.: The cable-focused business will house CNN, TNT Sports, international free-to-air channels, Discovery, digital products like Discovery+, and Bleacher Report.

Shares of Warner Bros. Discovery jumped 11% following the announcement.

Who’s Leading What?

• David Zaslav, current CEO of Warner Bros. Discovery, will lead the streaming and studios business.
• Gunnar Wiedenfels, the company’s current CFO, will take the helm of the cable-focused division.

For now, the two new businesses are operating under placeholder names—Streaming & Studios and Global Networks—until the split is finalized.

Why Split Now?

According to Zaslav, the goal is sharper focus and strategic flexibility. “By operating as two distinct and optimized companies, we are empowering these iconic brands to compete more effectively,” he said in a statement.

This restructuring has been in the works since December, when Warner Bros. Discovery announced plans to separate its operations into two divisions. Monday’s announcement simply formalizes what many already saw coming.

Context: A Shifting Media Landscape

Warner Bros. Discovery was itself born out of a massive merger just three years ago, when AT&T spun off WarnerMedia and merged it with Discovery Communications in a $43 billion deal. But the media environment has shifted quickly.

Traditional cable has been bleeding subscribers for years. Streaming giants like Netflix, Disney+, Amazon Prime Video—and Warner Bros.’ own HBO Max—have steadily pulled viewers away. The rise of mobile internet plans has only accelerated the decline of cable TV.

Other media giants are reacting too. Last year, Comcast spun off many of its cable TV networks. And just last month, Charter Communications offered to buy Cox Communications in a $34.5 billion deal that would create one of the largest cable companies in the U.S.

Executive Pay Under Scrutiny

The announcement also comes on the heels of controversy: just days ago, Warner Bros. Discovery shareholders symbolically rejected the 2024 pay packages of several top executives, including Zaslav, who is set to make over $51 million this year. Though the vote was nonbinding, it highlights growing investor frustration.

What’s Next?

The split still requires final approval from the Warner Bros. Discovery board and is expected to be completed by mid-2026.

As the streaming wars rage on and cable companies scramble to stay relevant, Warner Bros. Discovery is betting that two leaner, more focused companies will be better equipped to weather the storm.

Source: AP News – Warner Bros. Discovery to split into two companies, dividing cable and streaming services