Warner Bros. Discovery is planning to split into two publicly traded media companies by mid-2026 to maximize the potential of its business, the company has announced.

The separation will see WBD set up a streaming and studios company that bundles together Warner Bros. Television, Warner Bros. Motion Picture Group, HBO, HBO Max and DC Studios. At the same time, it will launch a new global networks-focused company that will comprise Discovery, Discovery+, CNN, TNT Sports, Bleacher Report and its catalogue of free-to-air European channels. 

J.P. Morgan and Evercore will serve as financial advisors for the deal, which WBD says will be a tax-free transaction to maximize value for shareholders. Each entity will be equipped with a new management team and a well-capitalized structure to support their business, funded by a new US$17.5 billion bridge facility that J.P. Morgan will provide. In addition, the networks’ business will retain a stake in the new streaming-focused entity of up to 20%, which it will leverage to lower its balance sheet. 

Once the transaction is finalized, David Zaslav will take over WBD’s streaming and studios business as president and CEO, while current CFO Gunnar Wiedenfels will become president and CEO of the new global networks company. 

“By operating as two distinct and optimized 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,” says Zaslav. 

In 2022, WarnerMedia merged with Discovery in a deal worth US$43 billion, a year after WB’s previous parentco AT&T decided to exit the entertainment industry to refocus on building up its telecommunications business.