Media: Warner Bros Discovery splits up

The media group Warner Bros Discovery also owns the broadcaster CNN. — The Warner Bros. Discovery media group also owns the broadcaster CNN. (Photo: KEVIN DIETSCH/Getty Images via AFP)

The streaming service and the film studio are to be separated from the more difficult cable television.

The US media group Warner Bros. Discovery is to be split into two publicly traded companies. The streaming service and film studio will be separated from the more challenging cable television division, the company announced on Monday. The split is expected to be completed by mid-2026. The group includes the pay-TV channel HBO and the news channel CNN, among others. The current management team will reportedly split up. CEO David Zaslav will head the streaming service and film studio, while current CFO Gunnar Wiedenfels will head the broadcasting division Global Networks. Zaslav stated that the separation would allow the units to compete more effectively.

The separation will strengthen each company . Each company can pursue important investment opportunities and increase value for shareholders, Wiedenfels said. The industry is undergoing a transformation as more and more customers turn to streaming services instead of traditional TV offerings. This puts pressure on many providers to consistently produce content that is in high demand while simultaneously improving their profitability in streaming services. Rival Comcast is also spinning off cable channels such as MSNBC and CNBC.