Warner Bros Discovery to Split into Two Companies- Streaming & TV

NEW YORK, June 9, 2025

Warner Bros. Discoveryannounced its split into two publicly traded companies, unravelling its studios and streaming business from its fading cable television networks. The film and television giant will turn its cable networks, including CNN, DC Studios, HBO, HBO Max and TNT, into one company and its streaming and studios business into another to compete better in the streaming genre.

The breakup is the latest unravelling of decades of media association that created global businesses straddling content creation, distribution and telecommunications in some cases. This split loosens the WarnerMedia and Discovery’s 2022 merger, intending to grow the streaming and studios business without the drag of the declining networks unit.

David Zaslav, the Chief Executive of Warner Bros. Discovery, will head the company’s streaming and studios business, which includes HBO Max and Warner Bros. Motion Picture Group. While Gunnar Wiedenfels, CFO, Warner Bros. Discovery, will lead the cable business, which includes CNN.

Zaslav said, "The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It's a treasured legacy we will proudly continue in this next chapter of our celebrated history.” "By operating as two distinct and optimised companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape."

Wiedenfelsstated that "This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value. At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximising our network assets and driving free cash flow."

Separation Insights

·   Each company will have well-capitalised structures to support its business growth.

·   Tender offers and related consent solicitations will commence across its existing capital structure to enhance its debt portfolio, which will be funded by a committed bridge facility of $17.5 billion provided by J.P. Morgan.

·   Both companies will have a clear path to de-leveraging with significant cash flow and strong liquidity through cash and revolver availability.

·   Global Networks will hold up to a 20% retained stake in Streaming & Studios that it will plan to monetize in a tax-efficient manner to enhance the deleveraging of its balance sheet.

·   The separation is expected to be completed by mid-2026, subject to closing and other market conditions, including final approval by the Warner Bros. Discovery Board.

·   J.P. Morgan and Evercore will be serving as financial advisors to Warner Bros. Discovery, and Kirkland & Ellis LLP will serve as legal counsel.