Mirror Review
June 10, 2025
Summary:
- Warner Bros. Discovery has announced it will divide into two separate public companies by mid-2026.
- This major restructuring separates its flourishing streaming and studio operations from its traditional, yet declining, cable television networks.
- The Warner Bros. Discovery split aims to give each new entity the “sharper focus and strategic flexibility they need to compete,” according to CEO David Zaslav.
As Warner Bros. Discovery plans to split into two independent public companies, it aims to give each side a clearer identity. So let’s take a closer look at what each of these new businesses will look like—and why this split matters.
A Tale of Two Companies
The Warner Bros. Discovery split will create two distinct businesses, each with its own leadership and focus. The two businesses will be:
- Streaming & Studios:
This new company will be led by current WBD CEO David Zaslav and will include the company’s most prestigious and creative assets, including:
- HBO and the HBO Max streaming service.
- Warner Bros. Motion Picture Group and Warner Bros. Television.
- DC Studios.
- Hit shows like Succession, The White Lotus, and The Last of Us.
- Global Networks:
This side of the business will be headed by current CFO Gunnar Wiedenfels.
It will oversee the company’s traditional cable TV networks, which still generate solid cash flow despite the industry’s shift toward streaming. The key assets included are:
- News giant CNN.
- TNT Sports.
- The Discovery channels, TLC, and HGTV.
Why the Split? The Debt Dilemma
One of the biggest reasons behind the split is the company’s large debt, a result of the $43 billion WarnerMedia and Discovery merger in 2022.
Furthermore, as of early 2025, WBD still carries around $34 billion in net debt.
So, post-split, here’s how the debt will be handled:
- The Global Networks company will take on the majority of the debt
- The Streaming & Studios side will also keep a significant portion as well
Moreover, in a memo to employees, CEO David Zaslav admitted the journey since the 2022 merger has been tough at times, but believes the business is now stronger.
Market Reaction To The Warner and Discovery Breakup
The decision of the split came shortly after S&P Global Ratings downgraded WBD’s credit rating, citing “continued revenue and cash flow declines” in the traditional TV business.
The stock market’s response was mixed. After an early jump, WBD shares ended the day down by nearly 3%.
Still, many analysts think the split will be good in the long run.
As Peter Jankovskis from Arbor Financial Services put it: “Simplifying the business helps investors understand its true value.”
The Split Is Part Of A Bigger Trend
WBD isn’t alone in making this kind of move. Comcast is also separating its cable channels, like MSNBC and CNBC, into a new entity called Versant.
Now, these changes reflect a bigger shift in the media industry. It’s the decline of traditional cable and the intense competition in streaming that are forcing companies to rethink how they operate.
Hollywood’s Next Chapter: What’s Next?
Here’s what to watch for as we head toward mid-2026:
- WBD is already restructuring its debt
- The Global Networks company will hold a 20% stake in the streaming business — a stake it could later sell to reduce debt
- The move leaves both companies more open to future mergers and deals
Now, the split also sets the stage for a new “succession drama” in Hollywood.
There’s also buzz about who might lead the next chapter. Since David Zaslav has been leading the streaming company for now, some wonder if this is a step toward his retirement.
Additionally, eyes are also on Casey Bloys (HBO’s content head) and Channing Dungey (Warner Bros. TV chief) as potential successors.
In conclusion, the Warner Bros. Discovery split is the boldest step yet to respond to what Zaslav calls a period of “generational disruption” and prepare its iconic brands for the future.
But as the media world continues to evolve… Will this division truly open new possibilities, or does it simply highlight the ever-growing challenges of traditional entertainment?
