Post by : Jyoti Gupta

Photo:AP

Warner Bros. Discovery, the company that owns HBO Max and CNN, has announced it will split into two separate companies by the middle of next year.

One company, called “Streaming & Studios” for now, will include HBO Max, Warner Bros. movies, and DC Studios. This part will be led by David Zaslav, who is the current CEO. 

The reason for this split is that streaming services like HBO Max are becoming more popular, while traditional cable TV is losing viewers. By splitting, investors can choose to put their money into the fast-growing streaming side without worrying about the problems of cable TV. At the same time, TV networks are still making good profits and have large audiences around the world.

This change comes only three years after Warner Bros. and Discovery merged. Since then, the company’s stock price has dropped by about half. After the split was announced, the stock price went up for a short time but ended the day lower.

Most of the company’s debt will stay with the Global Networks side, but some will also go to Streaming & Studios. The network company will also keep some streaming services, like Discovery+ and Bleacher Report. CNN is planning to launch a new streaming service later this year.

The split is expected to be finished by mid-2026. The company says this move will help both new companies focus better and succeed in their own ways.