CNN to Split from Warner Bros. Discovery in Major Media Shake-Up

In a dramatic restructuring of one of the largest media conglomerates in the world, Warner Bros. Discovery (WBD) announced on Monday that it will break apart into two publicly traded companies, separating its fading cable television division—including CNN—from its studios and streaming operations.

The move effectively reverses the $43 billion merger between WarnerMedia and Discovery Communications in 2022, a combination that has struggled to find its footing amid the rapid decline of traditional cable and the increasingly competitive streaming marketplace.

The Split: Studios vs. Cable

Under the new structure, Warner Bros. Discovery will divide into two distinct entities:

Streaming & Studios: This unit will encompass Warner Bros. Pictures, HBO, Max, and other core entertainment properties. It will be led by current WBD CEO David Zaslav.

Global Networks: This new company will house the company’s vast portfolio of cable assets, including CNN, TNT, TBS, Discovery Channel, and Food Network. It will be led by current CFO Gunnar Wiedenfels.

Both companies will be traded separately on public markets, giving investors the option to bet on either the future of streaming or the survival of legacy cable.

“By operating as two distinct and optimized companies, 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,” said Zaslav in a statement Monday morning.

CNN and Cable Brands Get a New Home

CNN, once a crown jewel of the 24-hour news cycle, will now be part of the newly created Global Networks company. The spin-off comes at a time when the value and profitability of cable news are being questioned in an era dominated by digital and on-demand content.

While Global Networks will inherit much of Warner’s massive $34 billion debt, it currently generates stronger revenue and healthier cash flow than the Streaming & Studios unit. That dynamic made it a candidate for a standalone operation, even as its future in a cord-cutting world remains uncertain.

Zaslav’s Gamble—and the Pressure He Faces

David Zaslav, who orchestrated the 2022 Warner-Discovery merger and has since come under mounting scrutiny, will stay on to lead the more glamorous half of the business—streaming and studios. This includes oversight of high-profile properties like Game of Thrones, the Harry Potter franchise, and HBO’s original programming.

But Zaslav is facing intensifying pressure on multiple fronts. Warner’s stock has plummeted 59% since the 2022 merger, erasing billions in shareholder value. Last week, nearly 60% of shareholders voted against his controversial $51.9 million compensation package for 2024—a symbolic rebuke reflecting broader dissatisfaction with WBD’s direction.

Compounding the issue, S&P Global Ratings downgraded Warner Bros. Discovery to junk bond status earlier this month, citing the cable network’s declining performance and unstable revenue model.

Why the Breakup Now?

Sources close to the company say WBD had been quietly laying the groundwork for this breakup since late 2024. In December, reports surfaced that the company was exploring ways to divest from its declining cable division, including possible sales or spinoffs.

Now, that plan is fully in motion. And Warner isn’t the only one moving in this direction.

In May, Comcast announced a similar restructuring of its media empire, spinning off NBCUniversal’s cable assets—including USA Network, E! and Bravo—into a new company called Versant. The trend signals a broader industry realization: cable television is no longer a growth engine, and the only path forward may be to isolate it from higher-growth segments like streaming.

Industry in “General Disruption”

The announcement comes amid what industry leaders have labeled a “general disruption” across the media landscape. Millions of viewers have cut the cord in favor of streaming services like Netflix, Amazon Prime Video, and Disney+, making it harder for legacy companies to sustain revenue and relevance in the pay-TV market.

Even titans like Disney and Paramount Global have reported steep declines in ratings and ad revenue across their linear television businesses.

This new era demands constant innovation and blockbuster content, both of which are expensive and increasingly hit-or-miss. Separating these companies allows for more focused investment and strategy—without having one struggling segment weigh down the other.

What’s Next for CNN?

CNN’s future is now in the hands of a yet-to-be-assembled leadership team under Global Networks CEO Gunnar Wiedenfels. The network, which has faced both ratings challenges and leadership turnover in recent years, will have to redefine its relevance as younger audiences turn away from traditional news platforms.

While CNN still commands strong brand recognition, the challenge now is monetization—especially as streaming platforms have begun to reshape how and when people consume news.

A Sign of More Changes to Come?

Industry analysts see Warner’s breakup as just the beginning. More media giants may follow suit, carving out distinct verticals for their streaming, studio, and legacy businesses in hopes of surviving the digital transition.

For Zaslav and Warner Bros. Discovery, the message is clear: embrace the future, or be swallowed by it.