Warner Bros. Discovery, the well-known streaming giant with a diverse portfolio of TV brands, has announced a significant change within the company. According to The Hollywood Reporter, Warner Bros. Discovery will be splitting into separate, independently functioning trading companies. This decision aims to maximize the potential of each entity. The separation is expected to be completed by mid-2026.

According to The Hollywood Reporter, the first one is called Streaming & Studio which will handle all of the creative assets of the company, which includes Warner Bros.Television, DC Studios, and HBO Max, along with their extensive film and television libraries, while also increasing its streaming capability. On the other hand, Global Network’s prime focus will be in charge of maintaining the company’s robust collection of free-to-air channels channels, involving CNN and TNT Sports.

The President and CEO of Warner Bros. ,David Zaslav addressed in an interview The Hollywood Reporter about the change,”The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history.”

Additionally, Zaslav further states in the interview with THR ,”By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape.”

According to The Hollywood Reporter, Zaslav and other WBD executives will provide further insights into the separation plan during a conference call with Wall Street analysts scheduled for Monday. The company’s goal is to enable each entity to pursue specific investment opportunities that cater to the demand for streaming growth, rather than focusing solely on optimizing established network assets.

According to The Hollywood Reporter, Zlasav referred to 2022, when Warner Media and Discovery joined forces, and stated, “As both organizations considered their futures, one truth became clear: to successfully adapt, transform, and lead in tomorrow’s entertainment industry, we needed to come together and draw on each other’s strengths.”