The Thin Gold Line: An Analysis of WBD's Internal Split

Warner Bros. Discovery Is Splitting Up: One Company Becomes Two

Just three years after the merger that created Warner Bros. Discovery, the company is making another dramatic move: it’s breaking itself in two.

Announced Monday, the media giant plans to divide into two separate publicly traded companies—one focused on its cable TV and international network assets, the other dedicated to its film studios and streaming businesses.

David Zaslav, currently WBD’s president and CEO, will lead the new Streaming & Studios division, which will include Warner Bros. Motion Picture Group, Warner Bros. Television, DC Studios, HBO, HBO Max, and the company’s extensive content library. Gunnar Wiedenfels, WBD’s CFO, will take the reins at Global Networks, which will house brands like CNN, TNT Sports, Discovery Channel, Discovery+, Bleacher Report, and a range of international and free-to-air channels.

The split is expected to be finalized by mid-2026.

Zaslav called the move a way to “sharpen focus” and give each business unit the flexibility to compete in today’s fragmented media environment. Wiedenfels echoed the sentiment, emphasizing that the separation will allow both companies to pursue more targeted investments and better unlock shareholder value.

This decision comes on the heels of a similar move by NBCUniversal, which recently announced plans to spin off many of its cable networks into a standalone company called Versant by the end of the year.

In the case of WBD, the writing may have been on the wall. Analysts say the value of its cable networks—especially TNT—took a hit after losing rights to air NBA games. Since WBD’s formation in 2022, its stock has dropped roughly 60%, although the proposed breakup gave the shares a 7% lift in pre-market trading on Monday.

The company’s logic is straightforward: separate the fast-growing, content-heavy entertainment brands from the more traditional cable and network side, allowing each to operate under its own strategy, budget, and leadership.

Analysis: Smart Split or Desperate Pivot?

Whether this is a smart restructuring or a reactive move depends on how you see the future of legacy media.

Why it could be a smart move:

• Streaming and Studios need freedom to grow. The core of Warner Bros.—HBO, DC, and Warner’s massive film/TV catalog—still holds enormous brand power. But in a world where Netflix and Disney+ are racing ahead, Zaslav’s division needs to move fast, take risks, and invest in big content. Untangling it from slower-growth cable assets gives it a cleaner financial profile and clearer mission.

• Cable is in decline—but still profitable. While cord-cutting continues, linear TV still generates a ton of cash, especially globally. Separating Global Networks lets that side of the business focus on squeezing value out of existing assets without being dragged down by the streaming arms race.

• Investors like simplicity. Wall Street tends to reward companies with clearer, more focused narratives. Two companies with distinct identities may be easier to value—and easier to sell, if it comes to that.

Why it could backfire:

• It signals weakness. Breaking up just three years after merging might look like an admission that the original vision failed. Instead of creating synergy between film, TV, and cable, the company is admitting they don’t play well together.

• Cable is a shrinking iceberg. Even with a sharper focus, Global Networks faces long-term decline. Spinning it off might just isolate the sinking ship rather than saving it.

• Splits don’t solve creative or cultural problems. WBD has faced criticism over leadership decisions, content cancellations, and strategy whiplash. A structural change won’t fix execution issues unless the leadership actually learns from past missteps.

In short, the breakup is probably a necessary step—but it’s not a cure-all. For it to work, both new companies will need bold vision, tight execution, and a willingness to adapt quickly. Whether WBD's leadership is up to that challenge is still an open question.