Warner Bros. Discovery has confirmed that it will split back into two companies, with one focused on streaming, and another focused on traditional TV broadcasting and distribution. The streaming company will be led by current CEO David Zaslav, and will keep Warner’s production studios, HBO and HBO Max, and game publishing. The TV company will have Warner’s worldwide TV networks, including CNN’s streaming service, Discovery+, TNT Sports, and Bleacher Report, and will be controlled by current CFO Gunnar Wiedenfels. The change is expected to be completed by mid-2026.
Comcast iscurrently spinning off NBCUniversal’s broadcasting empirein a similar fashion. The newly-formed Versant will eventually be in full control of USA, MSNBC, CNBC, and other networks, while Peacock, Universal Studios, Bravo, NBC, and other parts remain with Comcast.
The two new companies are currently named ‘Streaming & Studios’ and ‘Global Networks,’ but they will probably get different names before the deal is done. Warner has been throughalotof namesat this point.
What Changes for Us?
The move will have some effect on HBO Max, Discovery+, CNN, and Warner’s TV channels, but the full impact isn’t clear at the moment.
HBO Max might not lose any movies or shows from the deal, besidesall the ones it already removed, but its live sports coverage could be severely reduced or require a separate package. CNN’s live news and on-demand shows and documentaries could also be pulled from HBO Max, in favor of the separate CNN service operated by the TV company, though the live channel already requires a Standard or Premium HBO Max plan.
For now, the deal seems mostly focused on Warner Bros. Discovery shedding its corporate debt, asVarietysays, “the bulk of the current company’s debt will be assigned to the TV entity.” The initial merger of WarnerMedia and Discovery Inc created more than $50 billion in debt, and the de-merger is a convenient way for Warner executives to make (some of) that someone else’s problem. The wonders of corporate America.
