Over the coming months, the company will be splitting its streaming and studio divisions from its traditional television business.
“The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their legendary film and television libraries. Global Networks will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R),” it confirmed in an announcement.
“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” added David Zaslav, president and CEO of Warner Bros. Discovery, who will serve as president and CEO of Streaming & Studios once the split is finalised.
As for when that will happen, the decoupling could take as long as a year, with it expected to be complete by the middle of 2026.
What this means for South African customers, who access WBD content via service providers like MultiChoice and platforms such as Showmax, remains to be seen, but it looks like HBO Max will be a key focus for the Streaming & Studios division.
“The company will focus on continuing to scale HBO Max, which is now in 77 markets with important new market launches planned for 2026, and build on its global momentum, investing in HBO’s world-class programming which differentiates and drives the platform, and prioritizing the operating principles that have put the Studios on a path back to their target of at least $3 billion in annual adjusted EBITDA,” WBD continued.
Along with the aforementioned aspects of optimisation and flexibility, the split could also be motivated by economic struggles, as The Verge points out. Last year, a report by The Financial Times (paywall) indicated significant losses for the traditional television side of the business, which seemingly hampered WBD as a whole, with Zaslav even considering spinning up an entirely new company to address it.
Now it looks like a split of the company has been deemed the best course of action as Warner Bros. Discovery aims to better tackle its debt, which is estimated at $37 billion.
“The separation is expected to be completed by mid-2026, subject to closing and other conditions, including final approval by the Warner Bros. Discovery Board, receipt of tax opinions and/or a private letter ruling from the Internal Revenue Service with respect to the tax-free nature of the transaction for U.S. federal income tax purposes, and market conditions,” it concluded.
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