Streaming and Networks to operate separately as media giant restructures under investor pressure
By Miles Pennington, Senior Correspondent
Published: June 9, 2025
In a landmark decision that could reshape the future of entertainment, Warner Bros. Discovery announced on Monday that it will divide into two independent, publicly traded companies by mid-2026. The move comes amid mounting shareholder concerns over corporate strategy and executive compensation, and aims to provide a sharper focus for each business unit.
The announcement outlines a structural split between the company’s rapidly evolving streaming and studio operations, and its traditional global networks. Executives believe the realignment will allow for more agile decision-making and stronger financial accountability in both divisions.
Restructuring for a Clearer Future
Warner Bros. Discovery’s decision to separate follows a period of underperformance and internal tension. The company’s stock has declined by 7% so far this year, prompting calls for a more streamlined corporate structure.
The two new companies will each concentrate on their core competencies. The streaming and studio unit will house well-known entertainment brands such as Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, and Warner Bros. Television. This business is expected to double down on original content creation, theatrical releases, and digital streaming services.
Meanwhile, the global networks division will focus on cable and broadcast channels including CNN, TNT Sports, Discovery Channel, and various international holdings. This unit will prioritize live news, sports, and reality-based content, areas still maintaining consistent viewer engagement.
“This separation allows each company to better serve their respective markets and respond more quickly to changing industry dynamics,” said the CEO in the official announcement. The leadership teams for the two new companies are yet to be confirmed, with appointments expected in the coming months.
A Strategic Response to Investor Pressure
The split is widely seen as a strategic maneuver to address long-standing investor concerns. Shareholders have been particularly vocal about what they describe as a bloated corporate structure and overly generous executive pay packages.
Last year, a significant portion of shareholders voted against the executive compensation plan in a rare and symbolic move. This year’s restructuring announcement is seen as a direct response to that unrest.
Analysts believe the separation could unlock shareholder value by allowing each company to tailor strategies, manage risk independently, and attract investors with specific interests in either legacy media or digital content.
Market Trends Prompting the Shift
Warner Bros. Discovery is not alone in reevaluating its operational structure. The media industry is undergoing a period of rapid change, driven by shifts in consumer behavior, technology advancements, and evolving advertising models.
Streaming platforms are under increasing pressure to deliver profitability after years of subscriber growth-focused strategies. At the same time, traditional networks are grappling with declining viewership as audiences turn to on-demand digital content.
Splitting the company allows each division to focus on these distinct challenges without being held back by conflicting priorities. The streaming company can invest in cutting-edge production and international expansion, while the networks company can streamline operations and maximize revenue from existing infrastructure.
Implementation Timeline and Market Reaction
The restructuring process is expected to be completed by mid-2026, pending regulatory approvals and other customary conditions. Warner Bros. Discovery has indicated that it will share more detailed financial projections and structural plans in upcoming earnings reports and investor briefings.
So far, market response has been cautious but generally positive. Investors appear to welcome the increased transparency and focus, although analysts warn that much will depend on how effectively each new company executes its business model.
There is also speculation about potential acquisitions or divestitures following the split. Some observers suggest that the new entities may become more attractive takeover targets for larger technology or media firms looking to bolster their portfolios.
What’s Next?
With over a year to go before the official separation, Warner Bros. Discovery faces a critical transition period. Key questions remain about leadership, branding, and how existing content libraries and talent deals will be divided.
The outcome could serve as a case study for other media conglomerates facing similar structural challenges. As competitors like Paramount and Disney weigh their own strategic options, all eyes will be on Warner Bros. Discovery to see if this high-stakes move pays off.
