Media conglomerate Warner Bros. Discovery has revealed a major shake-up in the company amid declining cable TV audiences.
According to BBC, the HBO Max and CNN parent company announced that it will split into two companies by the middle of 2026 under its plan to separate studio and streaming business from its traditional cable television networks.
The decision came after seeing a continuous decline in the cable TV audience while streaming services have gained hundreds of millions of users around the world.
Recently HBO Max, owned by the media giant, thrived with hit shows including Succession, The White Lotus and The Last of Us. On the other hand, traditional television channels like CNN have been struggling with declining viewership.
Reason behind Warner Bros. Discovery split
The company stated that the separation is aimed at providing each company with greater strategic flexibility and focus.
Under the split, the company, known for now as “Streaming & Studios,” will be led by CEO David Zaslav, and the second company, “Global Networks,” will be led by CFO Gunnar Wiedenfels.
Zaslav said in a statement, “By operating as two distinct and optimised 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.”
“This evolution isn’t a departure from our strategy to deploy Max globally, optimise our global networks and return our studios to industry leadership, it’s about unlocking the full potential of two strong businesses,” he told staffers in an internal memo.
Zaslav believes that each company has a distinct focus, a clear mission, and the scale to succeed on its own terms.
Notably, the split came shortly after the 2022 merger that created Warner Bros. Discovery.
