Warner Bros. Discovery to Split, Restructure Debt

Warner Bros. Discovery (WBD) will split into two publicly traded companies by mid-2026, separating its streaming and studios division—including HBO, HBO Max, Warner Bros. Television, and DC Studios—from its cable and global networks division, which will house CNN, TNT Sports, Discovery, and Discovery+. CEO David Zaslav will lead the Streaming & Studios entity, while CFO Gunnar Wiedenfels will head Global Networks, which is expected to assume the majority of WBD’s $37 billion debt. The restructuring aims to address financial struggles related to heavy debt and declining cable TV revenues following the 2022 merger. Both companies will retain key assets and brands but operate under distinct strategies and financial profiles. Analysts remain cautious about the legacy networks business, citing weak revenue growth and the likelihood of modest standalone valuations despite strong cash flow. The move reflects a broader industry trend as media companies adapt to streaming and cord-cutting.