• Warner Bros. Discovery will split into two separate companies by mid-2026, focusing on streaming and studios versus cable networks.
• The Streaming & Studios division will include HBO Max, Warner Bros. Television, and DC Studios, while Global Networks will house CNN and TNT Sports.
• Shares of Warner Bros. Discovery surged nearly 10% following the announcement due to anticipated improved operational focus.

Warner Bros. Discovery announced on June 9 that it would split into two public companies, creating a distinct separation between its cable networks and its streaming services, which is a response to ongoing industry challenges and the growth of "cord-cutting." The two new entities will be known as Streaming & Studios and Global Networks. David Zaslav, the current CEO, will oversee Streaming & Studios, which will contain HBO, HBO Max, and Warner Bros. television and motion picture assets, while CFO Gunnar Wiedenfels will manage Global Networks, which includes CNN and TNT Sports, according to Reuters, Business Insider, NY Times, and CBS News.

Part of the strategic restructuring comes as many traditional media companies face declining viewership in cable programming due to the rise of streaming platforms like Netflix and Disney+. This split is set to be finalized by mid-2026, pending approval from the company's board. The announcement comes after a period of focus on addressing the company's substantial debt, which accumulated following its merger with Discovery and former Time Warner assets, reports India Times, HuffPost, Le Monde, and NPR.

Following the split announcement, shares in Warner Bros. Discovery rose over 9% in pre-market trading, reflecting market optimism regarding the shift towards more focused businesses. As Zaslav stated, "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," according to Reuters, NY Times, and HuffPost.