Warner Bros Discovery, the parent company of CNN and HBO Max, has announced plans to break into two separate companies by mid-2026, separating its traditional cable operations from its streaming and studio divisions.
The restructuring will see the company’s hit streaming services—such as HBO Max and its film studios—form a new Streaming & Studios unit, led by CEO David Zaslav. Flagship shows like Succession, The Last of Us, and The White Lotus will fall under this new umbrella.
Meanwhile, its cable brands including CNN, Discovery, and TNT Sports will operate under a newly formed Global Networks business, headed by current CFO Gunnar Wiedenfels.
“Our goal is to give each business the strategic flexibility and sharper focus needed to compete in today's media environment,” Zaslav said in a statement.
The move comes amid a continued decline in cable viewership and the growing dominance of streaming platforms. CNN, for example, saw its primetime audience dip 6% year-over-year in early 2025, while Warner Bros Discovery’s streaming subscriber base reached 122 million.
Despite the announcement, shares of Warner Bros Discovery dropped nearly 3% on Monday and are down over 10% year-to-date.
Analysts say the split mirrors industry trends, with media giants like Comcast also restructuring to separate legacy cable from digital operations. “Simplifying the business helps investors better evaluate each segment’s value,” noted Peter Jankovskis of Arbor Financial Services.
The decision follows Warner Bros’ 2022 merger with Discovery and is expected to reshape its strategy in a fiercely competitive content landscape.
