(Alliance News) - Warner Bros Discovery Inc on Monday said it will separate into two publicly traded companies, splitting Streaming & Studios and Global Networks to enable each to "maximise its potential".

The Burbank, California-based media and entertainment company said the Streaming & Studios company will consist of Warner Bros Television, Warner Bros Motion Picture Group, DC Studios, HBO, HBO Max and its film and television libraries.

Global Networks will include global entertainment, sports, news and television brands including CNN, TNT Sports in the US and Discovery, as well as digital products such as the Discovery+ streaming service and Bleacher Report.

The companies will be separated in a tax-free transaction.

The separation is expected to be completed by mid-2026, subject to approval and other conditions.

Current Chief Executive Officer David Zaslav will serve as president and CEO of Streaming & Studios.

Warner Bros Discovery CFO Gunnar Wiedenfels will serve as president and CEO of Global Networks. Both will continue in their current roles until the separation.

"The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It's a treasured legacy we will proudly continue in this next chapter of our celebrated history," Zaslav said.

"By operating as two distinct and optimised 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."

Chair Samuel Di Piazza said: "We committed to shareholders to identify the best strategy to realise the full value of our exciting portfolio of assets, and the board believes this transaction is a great outcome for WBD shareholders."

Separately, Warner Bros Discovery said it has started offers to purchase all of its outstanding notes and debentures for up to USD14.6 billion, alongside soliciting consent to enhance its debt portfolio.

The tender offers will be funded by a committed bridge facility of USD17.5 billion provided by JPMorgan Chase & Co.

The bridge facility is expected to be refinanced before the separation, Warner Bros Discovery added.

Global Networks will hold up to a 20% stake in Streaming & Studios that it will "plan to monetise in a tax-efficient manner" to "enhance the de-leveraging of its balance sheet".

Shares in Warner Bros Discovery were up 0.5% at USD9.87 in premarket trading on Monday in New York.

By Michael Hennessey, Alliance News reporter

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