The decision, driven by rapid changes in how audiences consume content, marks a strategic attempt to streamline operations and respond to the industry-wide shift from traditional cable TV to digital streaming platforms. The separation was first announced in June and is expected to be completed by mid-2026.
Under the planned restructuring:
- Warner Bros will become the new home for the company’s core entertainment assets, including Warner Bros Studios, DC Studios, and the HBO Max streaming service.
- Discovery Global will manage the company’s legacy cable TV networks, such as CNN, TNT Sports, and the Discovery+ streaming platform, which will adopt the same name.
The reorganization is designed to allow Warner Bros Discovery’s more profitable and high-growth content and streaming operations to develop independently, free from the financial and operational challenges associated with its cable TV division.
“Separating the business allows each unit to pursue more focused strategies tailored to their audiences and market dynamics,” the company said in a statement, framing the split as a proactive response to a rapidly changing media environment.
Industry Pressures Mount
Like many of its peers, WBD has been grappling with shrinking cable viewership and declining ad revenues, trends accelerated by consumer migration to on-demand, subscription-based streaming. The once-dominant cable TV model has steadily eroded, making it increasingly difficult for traditional media giants to maintain growth without aggressive digital transformation.
The split reflects a broader trend of media de-consolidation, as large conglomerates move to untangle the complex, multi-sector structures created during decades of mergers. Comcast, for instance, recently announced the spinoff of most of its NBCUniversal cable assets into a separate company called Versant. Similarly, Lionsgate Entertainment completed its long-anticipated separation of the Starz cable network from its film and television operations in May.
Strategic Realignment for Future Growth
By isolating its declining cable business from its more agile and scalable content operations, WBD hopes to better capitalize on its premium brands and storytelling capabilities—particularly in film, series, and streaming.
The move also gives both newly created entities the flexibility to explore tailored partnerships, content strategies, and capital structures that fit their market positions without being weighed down by competing priorities.
As WBD prepares to turn a page on its short-lived merger, the company’s breakup underscores a growing consensus in the industry: scale alone no longer guarantees success, and agility, focus, and content innovation are now the primary currencies in the battle for viewers' attention.