If you’ve ever binge-watched Game of Thrones on HBO. You have laughed along with Barbie at the theater, or tuned into CNN for breaking news, you’ve experienced the magic of Warner Bros. Discovery (WBD). This media powerhouse has been a cornerstone of entertainment for decades. But in the late time, it’s been making headlines for reasons beyond its blockbuster films and hit shows. With a major corporate shakeup announced just yesterday, June 9, 2025, WBD is splitting into two separate companies—a move that’s got everyone from Wall Street to Hollywood buzzing. Let’s discuss that what is happening, why it matters, and what it means for the future of this iconic brand.
A Bold Split to Navigate a Changing Industry
Warner Bros. Discovery dropped a bombshell on June 9, 2025, revealing plans to divide into two publicly traded companies: one focused on its streaming and studio operations, and the other housing its global linear networks. This decision, expected to finalize by mid-2026, effectively unwinds the 2022 merger between WarnerMedia and Discovery, a $43 billion deal that created one of the world’s largest media conglomerates.
The new Streaming & Studios company will be a creative juggernaut, encompassing Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and the newly rebranded HBO Max (more on that later). This division is home to cultural heavyweights like The Last of Us, House of the Dragon, and the DC Comics franchise, positioning it to compete head-on in the streaming wars. Meanwhile, the Global Networks company will include WBD’s cable and broadcast assets, such as CNN, TNT Sports, Discovery, and free-to-air channels across Europe, along with digital products like Discovery+ and Bleacher Report.
Why the split? It’s all about focus and flexibility. The media landscape has shifted dramatically, with streaming services like Netflix and Disney+ dominating viewer habits while traditional cable TV struggles. WBD’s cable networks have been losing subscribers, and the company’s stock has plummeted nearly 60% since the 2022 merger, dragged down by a hefty debt load and fierce streaming competition. By separating the declining linear TV business from the growth-oriented streaming and studio operations, WBD hopes to unlock value for shareholders and give each entity a clearer path to success. As CEO David Zaslav put it, the split will allow the company to “maximize its potential” in a rapidly evolving market.
Leadership Changes and Strategic Shifts
The split comes with a reshuffling of leadership. David Zaslav, WBD’s current president and CEO, will helm the Streaming & Studios company, leveraging his experience to steer its high-profile content slate. Gunnar Wiedenfels, the company’s CFO, will take the reins as president and CEO of Global Networks, tasked with stabilizing and potentially reinventing the cable business. Both will remain in their current roles until the separation is complete.
This isn’t the first time WBD has restructured to adapt to market pressures. In December 2024, the company reorganized into two operating divisions—Global Linear Networks and Studios & Streaming—laying the groundwork for this split. Recent moves, like layoffs in the cable division (fewer than 100 employees, but still significant) and the return of longtime executive David Leavy to WBD from CNN, signal a company in transition, streamlining operations and refocusing priorities.
HBO Max Is Back—And It’s a Big Deal
One of the most talked-about changes at WBD is the return of the HBO Max name. In 2023, the company rebranded its streaming service from HBO Max to simply Max, aiming to broaden its appeal beyond HBO’s prestige TV. But on May 14, 2025, WBD reversed course, announcing that HBO Max would reclaim its original name. Why the flip-flop? According to Zaslav, the HBO brand “represents the highest quality in media,” and reattaching it to the streaming platform is meant to capitalize on that prestige to drive subscriber growth.
The move has been met with a mix of nostalgia and skepticism. Fans cheered the return of a beloved brand, with some joking about keeping their old HBO Max stationery. But critics see it as an admission that the Max rebrand didn’t resonate as hoped. Still, the timing aligns with WBD’s streaming success: the platform added 5.3 million subscribers in Q1 2025, reaching 122.3 million globally, and has improved profitability by nearly $3 billion over the past two years. With hits like The White Lotus and upcoming projects like the Harry Potter HBO series, HBO Max is poised to remain a streaming leader.
Challenges and Controversies
Despite these bold moves, WBD isn’t out of the woods. The company has faced significant challenges since the 2022 merger. A $9.1 billion goodwill impairment charge in 2024, reflecting the declining value of its linear TV networks, contributed to a staggering $11.5 billion net loss for the year. S&P Global Ratings downgraded WBD to junk status in May 2025, citing weak revenue and cash flow from its cable operations, with $38 billion in gross debt still looming large. To address this, WBD secured a $17.5 billion short-term loan to buy back some debt ahead of the split.
Zaslav’s leadership has also drawn scrutiny. In 2024, 59% of shareholders voted against his $51.9 million compensation package—a symbolic rebuke given the company’s financial struggles. Posts on X have echoed this sentiment, with some users criticizing WBD’s management for broken promises post-merger and questioning the company’s direction. Yet, Zaslav’s defenders argue that his aggressive cost-cutting and strategic pivots, like the split, are necessary to navigate a brutal industry transition.
What’s Next for Warner Bros. Discovery?
The split is a high-stakes bet on the future. For the Streaming & Studios company, the focus will be on premium content and global expansion. WBD’s film and TV libraries, bolstered by recent hits like Barbie and upcoming DC projects, give it a strong foundation. The Global Networks company, however, faces a tougher road. Analysts suggest cost-cutting, including potential layoffs, may be needed to make the cable business profitable, while consolidation with other linear TV assets (like NBCUniversal’s Versant) could be on the horizon.
WBD is also exploring creative ways to leverage its IP. The launch of WBD Storyverse, announced on May 14, 2025, aims to help brands like State Farm and Unilever tap into WBD’s iconic characters and stories for marketing campaigns, signaling a push for new revenue streams. On the content front, Channing Dungey, head of WBD’s TV Group and US Networks, is greenlighting quirky projects like Dancing With Sharks for Discovery, blending nostalgia with innovation.
A Legacy in Transition
Warner Bros. Discovery’s story is one of adaptation in a cutthroat industry. From its storied history as a Hollywood titan to its current pivot toward a streaming-first future, WBD is betting big on its ability to evolve. The split into two companies is a bold acknowledgment that the old model—melding cable and streaming under one roof—no longer works. Whether this gamble pays off remains to be seen, but one thing’s certain: WBD’s next chapter will be anything but dull.
As a fan, I’m rooting for HBO Max to keep delivering binge-worthy shows and for Warner Bros. to churn out more cinematic gems. As an observer, I’m fascinated by how WBD navigates this seismic shift. What do you think about the split? Are you excited for the return of HBO Max, or skeptical about WBD’s future? Let’s chat in the comments!
Sources: Reuters, The Guardian, The New York Times, The Hollywood Reporter, Deadline, Variety, Bloomberg, CNBC, posts on X
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