The new Global Networks business will include entertainment, sports and dozens of cable TV brands such as CNN, TNT and TBS, and will be led by CFO Gunnar Wiedenfels. He will own a 20% stake in another business, Streaming and Studios, led by CEO David Zaslaw, and will use the proceeds from that venture as a way to reduce debt.
The move undoes much of the 2022 merger that brought together AT&T Inc.’s WarnerMedia, which owns iconic movie studios and television franchises, and Discovery Inc., the home of documentaries and reality shows. The deal created a company burdened with debt while cable television, its biggest business, lost viewers and advertising dollars.
“The decision to split Warner Bros. Discovery reflects our belief that each company can now go further and faster separately than together,” Zaslav said in a phone call with investors. He added that each business will attract a completely different set of investors.
Warner Bros. already changed its organizational structure into two divisions late last year as consumers shift from traditional pay TV to new online options.
The Global Networks unit will include some streaming assets, such as Discovery+ and CNN’s planned streaming news platform, as well as Warner Bros. sports rights. The company will also host a significant portion of Warner Bros.’ nearly $35 billion in debt.
The separation is expected to be completed by mid-2026, the company said, subject to closing and other conditions.
Source: Bloomberg