Media giant Warner Bros. Discovery (WBD) is heralding the next phase of its corporate strategy: The Group plans to split into two independent, listed companies by mid-2026. This is WBD's response to the far-reaching changes in the media landscape and is focussing on a clear separation between traditional television and digital entertainment.
Two new brands - two different orientations
The two new companies will operate under the names "Warner Bros." and "Discovery Global" will operate under the new name. While Warner Bros. will cover the streaming, film and series production and gaming business in future, Discovery Global will focus on traditional TV channels, news and sport.
Warner Bros. will include HBO, Max, DC Studios, the Warner Bros. Motion Picture Group and the gaming label Warner Bros. Games. Discovery Global will manage brands such as CNN, TNT Sports, Discovery+, Animal Planet and various free TV channels under its umbrella.
Change in management and clear responsibilities
With the announcement, Warner Bros. Discovery also presented the management teams of the new units. Former CEO David Zaslav will take the helm of the new Warner Bros. company. Discovery Global will be led by Gunnar Wiedenfels, who currently serves as CFO of WBD.
"With the reorganisation, we are creating two focused, agile companies that can each concentrate fully on their markets and target groups," said Zaslav in an internal statement.
A strategic cut with a signalling effect
The planned split comes at a time when the media industry is under severe pressure. Traditional television is struggling with falling viewing figures, while streaming platforms are grappling with costs and growing competition. WBD hopes that the separation will lead to greater efficiency, faster decision-making processes and better capital market opportunities.
Investors reacted positively to the announcement: Warner Bros. Discovery shares rose by several per cent after the plans were published.
Warner Bros. Discovery is sending out a clear signal with the planned demerger: The future of the media company no longer lies in a centralised large corporation, but in specialised units that can play to their respective strengths independently.