Warner Bros. Discovery has announced plans to split itself into two companies, separating its streaming and studios divisions from its linear television businesses. The split is expected to be completed by mid-2026 and is supposed to help “maximize the potential” of its portfolio of brands, according to the company.

Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, alongside their respective film and television libraries, will fall under a new “Streaming and Studios” company. Another company, described as “Global Networks,” will run entertainment, sports, and news television brands, including CNN, Bleacher Report, the Discovery Plus streaming service, TNT Sports in the US, and Discovery TV channels across Europe.

WBD had previously announced plans in December to restructure its business into two operating divisions, with WBD serving as the parent company. Now, it’s clear that was a precursor to this forthcoming split. Today’s announcement doesn’t mention leadership plans for WBD following the separation.

“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,” said WBD CEO David Zaslav. “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.”

Final names for the two companies weren’t given, so it’s not clear which will get the Warner Bros. brand. Zaslav will serve as President and CEO of Streaming and Studios, while WBD CFO Gunnar Wiedenfels will be President and CEO of the Global Networks company. Both will continue in their current roles at WBD until the separation. Global Networks will receive a 20 percent stake in the Streaming and Studios spinoff.

The Financial Times reported in July 2024 that Zaslav was considering creating a new company to separate WBD’s streaming business from the growing debts of its suffering legacy TV networks. Splitting the company in two appears to be WBD’s solution to handling those losses. WBD said that it’s taking out a $17.5 billion short-term loan to buy back some of its $37 billion debt ahead of the split. The company didn’t specify how much debt would be placed against each of the new companies, but said in an investor call that the “majority” would fall under Global Networks.