Warner Bros. Discovery has unveiled a significant strategic overhaul, announcing plans to split into two publicly traded entities through a tax-free transaction. This move is designed to unlock greater value and enhance operational focus. The two new companies—**Streaming & Studios** and **Global Networks**—will each pursue unique growth strategies aligned with their strengths and market opportunities.

The **Streaming & Studios** division will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, along with an extensive film and television library, Warner Bros. Games, and global studio operations in Burbank and Leavesden. This division will be led by the current President and CEO of Warner Bros. Discovery, **David Zaslav**, who will continue in his role while overseeing this newly formed unit. **Streaming & Studios** aims to scale HBO Max, which is currently available in 77 markets, with plans for further expansion by 2026. The division will leverage HBO’s acclaimed programming to drive growth, targeting an impressive **$3 billion in annual adjusted EBITDA**.

On the other hand, **Global Networks**, led by current CFO **Gunnar Wiedenfels**, will boast a robust portfolio of television and digital brands, including CNN, TNT Sports, Discovery, and the Discovery+ streaming platform, along with free-to-air channels across Europe and the digital sports outlet **Bleacher Report**. With operations in 200 countries and reaching over a billion unique viewers in 68 languages, **Global Networks** will continue to capitalize on its strengths in live TV, high-margin operations, and strong free cash flow. The focus will be on international expansion, enhancing live news and sports content, and growing digital properties.

This separation aims to create two more agile and focused companies, each equipped to pursue tailored strategies, optimize capital allocation, and attract shareholders aligned with their distinct financial profiles and growth trajectories. Warner Bros. Discovery has emphasized that both entities will be supported by robust financial structures. As part of this transition, the company has initiated tender offers and consent solicitations to optimize its debt portfolio, backed by a **$17.5 billion bridge facility** from JP Morgan, which is expected to be refinanced prior to the split.

After the separation, **Global Networks** will retain up to a **20% stake** in **Streaming & Studios**, which it plans to monetize in a tax-efficient manner to further reduce debt. The two companies will also establish transition service and commercial agreements to ensure a seamless operational handover and maintain efficiency.

The transaction is anticipated to close by mid-2026, pending final approval from Warner Bros. Discovery’s board, favorable market conditions, and necessary regulatory approvals, including a tax ruling from the IRS. Financial advisory for this transaction is being provided by **JP Morgan** and **Evercore**, with legal counsel from **Kirkland & Ellis LLP**.

Zaslav remarked: “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.”

Wiedenfels added: “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.”

**Samuel A. Di Piazza, Jr.**, Chair of the Warner Bros. Discovery Board of Directors, commented: “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.”