NEW YORK, June 9, 2025 — Warner Bros Discovery said Monday it will separate its business into two standalone companies, splitting its streaming and studios unit from its declining cable television networks in a move aimed at sharpening focus and competitiveness in the digital media era.

Chief Executive Officer David Zaslav will lead the streaming and studios company following the breakup, while Chief Financial Officer Gunnar Wiedenfels will head the newly independent global networks division, the company said.

"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 separation, expected to be completed by mid-2026, will be structured as a tax-free transaction. The company’s shares rose nearly 6% in premarket trading after the announcement.

The move signals a reversal of years of media consolidation that had created sprawling conglomerates combining content, distribution, and, in some cases, telecom assets. Warner Bros Discovery itself was formed in 2022 through the merger of WarnerMedia and Discovery.

The company had hinted at a possible spin-off in December when it began separating its streaming and studio operations from the cable networks segment. The new structure is expected to give the streaming unit greater scale and independence as it produces high-profile content without the drag of legacy assets.

The decision also aligns Warner Bros Discovery with Comcast, which is spinning off its own cable networks, including MSNBC and CNBC. Analysts, including Jessica Reif Ehrlich of Bank of America, have noted that Warner’s cable properties could become a logical fit with Comcast’s new spin-off entity.

In tandem with the split, Warner Bros Discovery said it launched tender offers to restructure its debt, backed by a $17.5 billion bridge loan from J.P. Morgan. The company plans to refinance the loan before the separation is finalized. It also stated that the global networks division will retain up to a 20% stake in the streaming and studios unit, with plans to monetize the holding to reduce debt further.

J.P. Morgan and Evercore are serving as financial advisers, and Kirkland & Ellis is acting as legal counsel for the transaction.