There's a massive shift coming for Warner Bros. Discovery, as it's been announced that it will be split into two separate entities. WBD will now exist as two publicly traded companies — one overseen by David Zaslav and the other by WBD Chief Financial Officer Gunnar Wiedenfels.
Zaslav will be President and CEO of one of the companies, known as Streaming & Studios. This new entity will be comprised of DC Studios, HBO Max, HBO, Warner Bros. Motion Picture Group., Warner Bros. Television and Warner Bros. Games. It will also include WBD's full film and TV library.
Wiedenfels will be President and CEO of the other company, called Global Networks, which, as Warner Bros. Discovery explained in a press release, will, "include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report."
While the move was announced today, the split will offically take effect in mid-2026. In the meantime, Zaslav and Wiedenfels will remain in their current roles at the company as CEO and CFO, respectively.
In a statement, Zaslav said the move would give "sharper focus" to WBD's brands, and a better ability to compete in the entertainment industry:
"The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history. 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."
In his statement, Wiedenfels shared the optimism expressed by Zaslav, explaining that the deal would allow both companies to take advantage of their strengths:
"This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value. At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow."
Furthermore, Chair of Warner Bros. Discovery Board of Directors Samuel A. Di Piazza, Jr. stated the company's Board of Directors was enthuastic about the split: "We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders. This announcement reflects the Board’s ongoing efforts to evaluate and pursue opportunities that enhance shareholder value."
According to Gunnar Wiedenfels (via The Hollywood Reporter), the move will also likely be used to put the "majority" of the company's $37 billion debt into Global Networks. As the CFO explained during a conference call:
"It's too early to talk about a target capital structure. We haven't made final decisions yet, and you know, there's a lot we need to work through between now and when this deal closes. A couple of things can be said, though. Number one, it's safe to assume that the majority of the debt is going to live with Global Networks and a smaller portion — but a not-insignificant portion — on Streaming & Studios as well.”
From the announcement, nothing looks to change for James Gunn and Peter Safran's DC Studios, which is good news, given how the studio is getting ready to release its first tentpole, Superman, in July, and a slate of new films and TV shows following that, including Peacemaker Season 2, Supergirl, Lanterns and Clayface.
Superman will release in theaters on July 11, 2025.
What do you think of the move to split Warner Bros. Discovery into two companies? Share your thoughts in the comments.