Warner Bros. Discovery Splits as Zaslav Revises Media Strategy
Deal News | Jun 09, 2025 | EIN
Warner Bros. Discovery CEO David Zaslav has announced a significant restructuring of the media conglomerate, splitting it into two distinct entities. One will focus on digital streaming, led by Zaslav, and will include HBO Max and Warner Bros.'s studios. The other, covering cable networks like CNN and Discovery, will be managed by CFO Gunnar Wiedenfels. This decision reflects an adaptation to the digital age and Wall Street's critical perspective on the company's current direction. This split occurs amid financial constraints, partly due to the $50 billion debt from the previous merger with Warner Media. Since this merger, the company has seen fluctuating market valuations and strategic shifts, including the closure and partial revival of CNN's streaming service. Moving forward, there is speculation about potential buyers for the split entities, including interest from private equity firms or other media players, as Zaslav's original ambition for a mega-media entity scales down.
Sectors
- Media & Entertainment
- Corporate Finance
Geography
- United States – Warner Bros. Discovery is a US-based media conglomerate, and the operations, as well as the restructuring, primarily affect the US market.
Industry
- Media & Entertainment – The split announced by Warner Bros. Discovery is a major restructuring in the media and entertainment industry, affecting content distribution via streaming and cable networks.
- Corporate Finance – The article discusses the financial strategies and debt challenges impacting Warner Bros. Discovery, relevant to corporate finance practices.
Financials
- $43 billion – The value of the acquisition deal when Warner Media was merged to form Warner Bros. Discovery.
- $50 billion – The debt incurred from the Warner Media acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Warner Bros. Discovery | Target | Company | A major media company undergoing a strategic split into streaming and cable network entities. |
| David Zaslav | CEO, Streaming & Studios Head | Person | The current CEO of Warner Bros. Discovery who will lead the new streaming and studios company after the split. |
| Gunnar Wiedenfels | CFO, Cable Business Head | Person | The CFO of Warner Bros. Discovery who will manage the new cable business entity. |
| Comcast | Potential Buyer | Company | A similar media company that underwent a comparable restructuring, mentioned as a reference for potential buyers for Warner Bros. Discovery's cable channels. |
| Versant | Potential Buyer | Company | The new parent company for MSNBC and CNBC, considered a potential buyer for Warner Bros. Discovery's cable channels. |