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

Just three years after tying the knot, Warner Bros. DiscoveryWBD

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’sCMCSA
  spinoff.
• WBD
  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.