Warner Bros. Discovery Will Split Into Two Public Companies

Entertainment giant Warner Bros. Discovery (WBD) plans to split into two publicly traded companies by 2026.

The move comes as Warner Bros. Discovery has struggled as consumers continue to migrate from traditional cable television to streaming platforms.

Within the next year, Warner Bros. says it will split into two companies. The first will be a streaming and studios firm that includes its movie properties and HBO Max streaming service.

The second publicly traded company will be a networks company and include specialty television channels such as CNN, TNT Sports and Discovery, among others.

Current Warner Bros. Discovery Chief Executive Officer (CEO) David Zaslav will lead the streaming and studios company, while Chief Financial Officer (CFO) Gunnar Wiedenfels will become CEO of the networks business.

“We are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete,” said Warner Bros. Discovery in a news release.

There had been rumours in the media for months that Warner Bros. Discovery was considering splitting its business.

CEO Zaslav has been under pressure to make changes at the entertainment company with its share price underperforming peers such as Netflix (NFLX) and the broader stock market.

Warner Bros. Discovery’s stock has declined 55% over the last five years and currently trades at $9.82 U.S. per share.