Warner Bros Discovery to Split Streaming and Cable Divisions in Bold 2026 Restructuring Plan

Warner Bros Discovery, the parent company of CNN and HBO Max, has announced plans to divide into two distinct companies by mid-2026. This decision is part of a broader strategy to adapt to the fast-changing dynamics of the media industry.

One of the newly formed entities will concentrate on the company’s thriving studio and streaming operations, while the other will manage its traditional cable television channels. The move reflects the contrasting paths of these two areas—streaming continues to grow rapidly worldwide, while cable TV experiences a steady drop in viewership.

Streaming and Cable Operations Split to Sharpen Focus and Boost Long-Term Performance

The new “Streaming & Studios” division will include HBO Max, which has produced recent hits such as Succession, The White Lotus, and The Last of Us. This entity will also encompass Warner Bros’ film studio operations and will be overseen by Warner Bros Discovery CEO David Zaslav.

The aim is to give the content-driven arm of the company greater strategic focus and agility in a highly competitive streaming market. With over 122 million subscribers at the end of Q1 2025, the streaming business appears to be the growth engine of the conglomerate.

The second entity, named “Global Networks,” will consist of legacy cable channels including CNN, Discovery, and TNT Sports. This division will be led by current CFO Gunnar Wiedenfels and is intended to give the cable operations a clearer identity and focus amid ongoing challenges. CNN, for instance, has seen a notable decline in viewership, averaging only 558,000 primetime viewers in early 2025—a 6% drop from the previous year. The network has also faced layoffs and is pivoting toward digital formats to stay relevant.

Media Giants Restructure to Unlock Value and Adapt to Shifting Industry Demands

According to executives, the split is intended to provide each company with the “sharper focus and strategic flexibility” required in today’s increasingly segmented media environment. Analysts such as Peter Jankovskis believe that streamlining the business structure will make it easier for investors to evaluate the true value of each division.

This move aligns with a growing trend in the industry, as seen with Comcast’s ongoing separation of NBCUniversal’s cable and streaming operations. Major media companies are adopting similar approaches to unlock greater value from their individual business segments.

Despite the bold restructuring plan, Warner Bros Discovery’s stock fell nearly 3% following the announcement, continuing a downward trend of over 10% for the year. Still, industry experts believe the split could offer long-term benefits by allowing each business to thrive on its own terms.

With cord-cutting accelerating and streaming platforms battling for dominance, media companies are under pressure to innovate and streamline. The success of Warner Bros Discovery’s reorganization could set a precedent for other conglomerates navigating similar transitions.