Warner Bros. Discovery, the media conglomerate that owns HBOMax, TNT Sports, and CNN, will be splitting up into two companies.
The company will be divided into one that handles streaming and studios, including HBO Max and its movie properties, and another that will be in charge of its global network company, consisting of CNN, TNT Sports, and Discovery.
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“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,” David Zaslav, chief executive officer of Warner Bros Discovery, said in a statement.
Zaslav will lead the streaming and studios, while Gunnar Wiedenfels, the chief financial officer, will lead the global networks company.
Warner Bros. Discovery’s division comes just three years after Time Warner and Discovery merged. During this time, the company lost half its value as more and more people abandoned traditional cable networks and turned to streaming services.
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Warner Bros. Discovery is currently $37 billion in debt, and it has not been decided how the debt will be split between the two new companies. However, there are plans to take out $17.5 billion in short-term loans to buy back some of the debt from bondholders.
Warner Bros. Discovery’s decision to separate its streaming services from its waning traditional network business follows that of Comcast, the parent company of NBC and Universal Studios, which decided to create a new company called Versant that will handle its network TV business.