MUMBAI: When one studio door closes, another opens with a box-office bang. In a dramatic plot twist that rivals its biggest screen spectacles, Warner Bros. Discovery (WBD) is pressing play on a two-part sequel splitting into two publicly traded companies to give each unit its moment in the spotlight. Announced today, the tax-free separation will see WBD carve out Streaming & Studios home to HBO, DC Studios, Warner Bros. Pictures and Television, and HBO Max from Global Networks, which includes CNN, TNT Sports, Discovery, and Discovery+, as well as key linear and digital assets across 200 countries and 68 languages.

David Zaslav, WBD’s current President and CEO, will lead Streaming & Studios, while Gunnar Wiedenfels, its CFO, will take charge of Global Networks. Both will retain their existing roles during the transition.

“This move gives us the sharper focus and agility needed to thrive in today’s fast-evolving media universe,” Zaslav said, promising a future of creative excellence and strategic flexibility. Wiedenfels added that the split will allow “each company to leverage its strengths and financial profiles,” paving the way for innovation and shareholder value.

Streaming & Studios will combine storytelling firepower and IP goldmines think Harry Potter, Game of Thrones, and Batman with global platform HBO Max, which currently operates in 77 markets and plans further expansion by 2026. WBD is aiming for 3 billion dollars in annual adjusted EBITDA from this division.

Global Networks, meanwhile, commands a massive reach of 1.1 billion viewers, with an eye on live content growth, international opportunities, and monetising digital assets like B/R and CNN’s new streaming play. The unit boasts industry-leading margins and strong free cash flow.

A crucial detail: Global Networks will retain up to 20 per cent stake in Streaming & Studios, planned to be monetised later for balance sheet de-leveraging.

To support the split, WBD has secured a 17.5 billion dollars bridge facility from J.P. Morgan, which it expects to refinance before separation. Tender offers and consent solicitations have also been launched to optimise its debt structure.

The full spin-off is targeted for mid-2026, pending board approvals, market conditions, and tax clearances from the IRS. J.P. Morgan and Evercore are advising, with Kirkland & Ellis as legal counsel.

WBD Chair Samuel A. Di Piazza, Jr. framed the move as a win for shareholders: “This transaction is a great outcome, unlocking long-term value and strategic focus for two exceptional businesses.”

The end credits may still be a year away, but WBD’s bold reboot is already setting the stage for a media double feature like no other. One company to power global fandoms, another to rule the airwaves all from the studio that gave us a century of storytelling magic.