Warner Bros. Discovery to Separate CNN and TNT from HBO Max: What This Means for Viewers

Warner Bros. Discovery has announced plans to split into two separate companies by mid-next year. This decision comes as media giants adapt to changes in audience behavior.

One new company will focus on Warner’s studios and streaming, including HBO Max and the DC Comics universe. David Zaslav, the current CEO, will lead this entity. The other company will manage WBD’s TV networks, like CNN and Discovery, under CFO Gunnar Wiedenfels. This company will also inherit most of WBD’s debts.

Zaslav stated that creating two focused companies will help these well-known brands navigate today’s shifting media landscape more effectively.

This move is occurring amid a larger trend in the media industry. Traditional TV is under pressure from cord-cutting, as audiences turn to streaming platforms like Netflix and social media sites like TikTok. A wave of consolidations is expected in response.

WBD’s decision mirrors Comcast’s recent announcement to spin off its cable networks into a new company called Versant. This is part of a broader trend where companies are reassessing their strategies in a rapidly changing market.

Zaslav, who has faced challenges since WBD was formed in 2022, acknowledged the need to reset the company’s finances. The stock performance reflects this turmoil, with shares plummeting by about 60% since he took over. Recently, analysts at Bank of America suggested that WBD “is not working as a publicly traded entity” and will likely require significant changes to recover.

In discussions with investors, Zaslav mentioned that WBD may rethink the future of its streaming sports. The company recently lost NBA streaming rights to NBCUniversal and Amazon’s Prime Video, highlighting the increasing competition in the sports streaming arena.

As the media landscape continues to evolve, companies like WBD are forced to adapt or risk falling behind.



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