Warner Bros. Discovery is splitting into two companies—one for streaming and studios, the other for global networks. It’s not just a reorg. It’s an admission: in this market, scale without focus is a liability.

David Zaslav will lead the newly carved-out Streaming & Studios division, overseeing HBO, HBO Max, Warner Bros. TV, DC Studios, and the motion picture group—a portfolio built to play offense in original content and IP. CFO Gunnar Wiedenfels steps into the top role at Global Networks, which corrals CNN, Discovery, TNT Sports, and a suite of linear assets across Europe, along with profitable holdouts like Discovery+ and Bleacher Report.

The split, expected to close mid-2026, mirrors a growing pattern: Comcast is spinning out its cable assets under “Versant,” Lionsgate peeled off Starz, and investors are circling legacy media’s cash-heavy but growth-stalled network divisions. These entities still throw off real revenue—but Wall Street wants stories of growth, not decline management.

Zaslav framed the move as a way to unshackle creativity and precision: “Two distinct and optimized companies” able to chase very different goals—streaming scale on one side, operational yield on the other. In practice, it’s a strategy to attract new investors, streamline capital allocation, and prepare both sides for a world where consolidation is coming faster than most expected.

Once the split is complete, both companies will operate under separate boards and management teams, with transition service agreements in place to keep things running smoothly. The deal is expected to be tax-free for U.S. federal income tax purposes—another sign of just how carefully choreographed this is behind the scenes.

But the real question: Is this the start of something bigger? Zaslav keeps the crown jewel—storytelling IP—and positions himself for the streaming endgame. The networks get a new CEO, leaner leadership, and the freedom to merge, sell, or pivot into the next phase of media’s unbundling.

In short: WBD isn’t shrinking. It’s splitting for survival.