Alpha

Discover

BusinessJun 9, 2025

Warner Bros. Discovery Will Split Its Cable, Streaming Businesses After Languishing Since Merger

Media Divestiture

Daniel Schoester

Go Deeper

Related stories

media rights

FIFA Is Bringing World Cup Rights Back To Market

Semiconductor

Apple Expands US Manufacturing Footprint in Multiyear Broadcom Pact

retail sector

Why Major Retailers Are Slashing Food Costs

Electric Vehicle

Fiat Targets Niche US Market With New Electric Topolino

airline

Airlines Capitalize on Changing Traveler Habits

Just three years after tying the knot, Warner Bros. Discovery is heading for divorce. The media conglomerate announced on Monday that it’s splitting into two companies by mid-2026, carving out the struggling cable business from its broader empire. With shares plummeting ~60% since the merger, the breakup news sent the stock surging 11% — before closing the day down 3%.

The “Streaming & Studios” unit will house HBO Max, Warner’s studios, and DC Comics — while “Global Networks” will take CNN, TNT, and Discovery cable, echoing Comcast’s spinoff.
bets that separate parts are more valuable, appeasing shareholders following a CEO compensation revolt — simultaneously tucking most of its ~$34B debt into Global Networks.

Better off apart? While Global Networks posted a higher top-line income, the unit lost $55M in Q4 vs. streaming’s $409M quarterly profits. The cable side also absorbed a devastating $9.1B impairment charge as revenues fell 6% in March amid accelerated cord-cutting and lost NBA rights. Otherwise, S&P’s recent junk downgrade confirms what became painfully clear — the legacy business transformed from asset to liability. Sometimes, the best marriages end in the most amicable separations.