Warner Bros. Discovery (WBD) has unveiled plans to separate into two distinct publicly traded entities through a tax-free spinoff, reshaping its business for a new era of media consumption. The split, expected to be finalized by mid-2026, will create one company focused on content creation and streaming, and another dedicated to global networks, sports, and news. 

The first entity, Streaming & Studios, will house Warner Bros. Television, Motion Picture Group, DC Studios, HBO, and HBO Max. It will be led by current CEO David Zaslav, who will continue to steer the company’s flagship content and franchise strategy. 

The second entity, Global Networks, will encompass CNN, TNT Sports, Discovery, Discovery+, Bleacher Report, and other entertainment and news assets. It will be headed by current CFO Gunnar Wiedenfels and will retain up to a 20% ownership stake in Streaming & Studios, ensuring a strategic link between the two companies. 

The transaction is backed by a $17.5 billion bridge financing facility led by J.P. Morgan, which is also acting as a financial advisor alongside Evercore. Legal counsel is provided by Kirkland & Ellis LLP. 

“The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history,” Zaslav said in a statement.