To potentially change the future of both the traditional media and digital entertainment industries, Warner Bros. Discovery (WBD) declared its plan to divide into two publicly listed companies at some point next year. On June 9, 2025, the company announced the decision, saying it was made to keep up with how consumers’ habits are quickly changing.
Due to the separation, the media conglomerate’s HBO, CNN, Discovery Channel, and Warner Bros. Pictures will move to one company, while the global network, including cable and sports, will become part of another.
David Zaslav will keep leading the streaming and studios area, while Gunnar Wiedenfels is becoming the new CEO of Global Networks. The announcement ends months of guessing and reorganizing at the company and shows that a major player in entertainment is turning in a big way.
What the Two New Companies Will Look Like
The company’s plan involves putting HBO Max and Warner Bros. Pictures, along with various film and TV assets, inside the streaming and studios operation. Thanks to this strategy, the company will concentrate on making and distributing digital shows and streaming them globally to take on Netflix and Amazon, and Disney+.
The GA global networks company will be formed with channels such as CNN, TNT Sports, and Discovery, still holding a major lead in television, breaking news, and sports. Given people canceling subscriptions, this division will make efforts to secure its income and grow globally.
A separation is expected, so that each company will operate with its distinct board, chosen strategies, and own capital. Zaslav pointed out that this move helps each business unit to be flexible and stand strong where they operate, as explained in the official release.
Industry Trends Behind the Decision
This situation comes at a time when large traditional media companies are challenged because they cannot match the success of newer digital firms. There has been a huge rise in streaming content requests, yet the number of people getting cable has gone down.
That decision resembles moves taken by other media outlets. For example, Comcast is now making plans to make CNBC and its cable services part of a different public company known as Versant. It is believed by analysts that splitting into two companies shows that companies now recognize that legacy and digital media call for different actions and financial strategies.
The announcement by the company agrees with its earlier restoration efforts. At the end of 2024, Warner Bros. Discovery carried out internal changes and cut hundreds of jobs, something many insiders believed would end with the present split.
Market Reaction and Investor Response
Following the announcement, investors showed their approval by pushing the company’s shares up more than 9% ahead of normal trading hours. The changes made by McDonald’s have received praise from Wall Street experts, who think that, with the new setup, its different parts won’t fight over resources and will be able to operate more efficiently.
Nevertheless, there are a few concerns. Outcomes will be determined by how well the companies adjust to their particular issues after the split. The streaming unit has to deal with lots of competition and growing budgets for content creation, whereas networks struggle with their cable earnings and the movement of advertising dollars.
He admitted it would not be easy but emphasized that the aim is to help the brands adjust and compete in the best way.
What This Means for Viewers and the Industry
Currently, users won’t notice much difference, but as time goes on, they might see different approaches to content, new charges, and new brand identities being applied to both HBO Max and the usual cable channels. Regionalized selection might come to viewers as the streaming service works to expand its work overseas.
