]
Warner Bros. Discovery is officially getting the axe! A new report confirms plans to split the media conglomerate into two, leaving one with massive debts.
The Warner Bros. Discovery merger has turned out to be one of the biggest belly flops in corporate history. Back in 2022, the two companies came together to create one entity saddled with over $50 billion in combined debts. As such, CEO David Zaslav began to take the weedwhacker to current productions, torpedoing the company’s reputation with fans and creatives while doing little to address the actual debt.
Three years on, Warner Bros. Discovery now plans to split into two companies once more. While both companies currently remain unnamed, the first is set to focus on “Streaming & Studios” and will continue to be led by David Zaslav. The second will focus on “Global Networks,” with current Warner Bros. Discovery CFO Gunnar Wiedenfels becoming CEO once the split is completed.
What This Split Means For Warner Bros. Discovery, DC, & More
The only part of this merger that the layman needs to focus on is debt. The “Streaming & Studios” company, which will continue to be run by David Zaslav, will take on comparatively little of the debt Warner Bros. Discovery holds once the split happens. This likely gives the confidence for management and investors to take bigger financial swings when it comes to their programming. However, it will likely not change the ethos of their decisions, meaning the type of content put out will likely remain similar (sorry animation fans).
But as the “Streaming & Studios” side of Warner Bros. Discovery gets a boon, “Global Networks” gets a major kneecapping. They will be saddled with the majority of the debt WBD currently holds, totaling about $37 billion. This means that more cuts will likely be seen in the programs under their control: CNN, TNT, and Discovery Plus, among others. The “Global Networks” company will likely be looking for yet another buyout in the coming years, with a company such as Apple or Paramount being the most likely to snap up their package.
The corporate breakup of Warner Bros. Discovery is expected to go into place in mid-2026. Stay tuned for the latest news regarding the future of Warner Bros. Discovery and make sure to subscribe to our YouTube channel for more content!
Source: CNN
