HBO and CNN owner to split streaming and cable businesses

In a major shakeup of the U.S. media landscape, Warner Bros Discovery—the powerhouse behind CNN and HBO Max—has announced it will split into two separate companies by mid-next year.

The decision marks a strategic shift aimed at adapting to the rapidly evolving entertainment industry. The company plans to separate its studio and streaming assets from its traditional cable television networks, creating two independent entities.

🎬 Streaming & Studios Division

This new business unit will encompass:

HBO Max, home to global hits like Succession, The White Lotus, and The Last of Us
Warner Bros. film division
Other premium content assets

It will be led by David Zaslav, the company’s current President and CEO.

📺 Global Networks

This entity will include:

CNN
Discovery Channel
TNT Sports

It will be headed by Gunnar Wiedenfels, Warner Bros Discovery’s current Chief Financial Officer.

“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,” said Zaslav.

📉 Market Reaction & Industry Impact

Despite the announcement, shares of Warner Bros Discovery dropped nearly 3% on Monday, continuing a downward trend of over 10% for the year.

Analyst Peter Jankovskis of Arbor Financial Services noted:

“When you make the business less complicated, analysts can go in and do a better job of determining what the business is actually worth.”

This move mirrors industry trends, including Comcast's ongoing efforts to spin off its NBCUniversal cable networks (MSNBC, CNBC) from its Peacock streaming platform.

📊 Mixed Fortunes

CNN averaged just 558,000 primetime viewers in Q1 2025 — a 6% drop from the same time in 2024. The network also laid off 200+ employees in January amid a shift toward digital.
In contrast, the company’s streaming platforms now boast over 122 million subscribers, a bright spot in a challenging market.

As streaming continues to dominate and cable viewership declines, Warner Bros Discovery’s split aims to give each business the clarity, focus, and freedom to thrive in an increasingly fragmented media world.