Warner Bros. Discovery, grappling with declines in its overall business, said Monday it planned to divide the company into two publicly-traded entities, one devoted to streaming and content production and one devoted to traditional television.
Warner Bros. Discovery CEO David Zaslav will remain as the leader of the streaming-focused entity, while Gunnar Widenfels, the company’s CFO who has become known for finding new ways to cut old costs, will lead the TV company. The separation is expected to be completed by mid-2026, subject to closing and other conditions.
“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,” Zaslav said in a statement.
The company is emulating a strategy recently put into place by rival Comcast. That company is breaking up NBCUniversal, with plans to place the bulk of its cable networks in a new publicly-traded spinoff called Versant while keeping its broadcast and streaming assets under the better-known entity, NBC.
Warner has grappled with many obstacles since being formed by the combination of AT&T’s WarnerMedia — the company once known as Time Warner — and the former Discovery Communications, Under Zaslav, Warner has fiddled with streaming strategies and deprived top cable networks of TNT and TBS of the original content they need to flourish. Warner recently lost long-held rights to televise NBA games, a contract that gave its networks a major sporting franchise that drew large crowds on the regular. And it has written down the value of its cable properties.
The streaming company will encompass the Warner TV and movie studios, HBO and HBO Max and a games and experiences division. The company will focus on building out the HBO Max streaming service and investing in programming. Meanwhile, the TV company will include Warner’s TV networks around the world along with specific digital brands tied to the TV entities, including Discovery+, Bleacher Report and CNN’s new streaming products.
More to come….