Warner Bros Discovery said Monday it would split into two companies, separating its studios and streaming business from its fading cable television networks as the parent of HBO and CNN looks to compete better in the streaming era.

Its CEO David Zaslav will lead the streaming and studios business after the breakup, while CFO Gunnar Wiedenfels will head the Global Networks unit that includes the cable assets.

A new publicly traded company, Global Networks will be home to CNN, TNT, TBS and Warner's dozens of other cable channels, including Discovery Channel and Food Network.

Comcast is making a similar move with its media brands by planning to spin off most of its NBCUniversal cable channels into a separate, publicly traded company that it officially branded as Versant in May 2025.

Splitting the company into the two standalone publicly traded companies essentially undoes the Warner Media and Discover Communications 2022 merger, The Wall Street Journal reports.

Like Disney and Paramount Global, Warner’s ratings and revenue have declined as viewers continue to abandon traditional pay television for streaming services like Netflix and Amazon Prime Video.

Zaslav has also been under increasing pressure to boost Warner Brothers Discovery’s (WBD) drooping stock price, down 59% since the 2022 merger.

Earlier this month, S&P Global Ratings downgraded Warner to junk status because of its cable network challenges.

Last week, 59% of Warner shareholders symbolically voted against the $51.9 million compensation package that Zaslav received in 2024, along with the pay packages for other top Warner executives.

Global Networks will absorb a significant portion of the $34 billion debt that Warner holds on its balance sheet. Currently, Global Networks is generating more revenue than Streaming & Studios, and has a stronger cash flow.

"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," Zaslav said.

The media industry is going through what some executives have called a "general disruption" as millions of subscribers abandon the once-lucrative cable TV for streaming.

That has piled pressure on companies to consistently produce hit studio content and boost profitability in their streaming businesses.

WBD had laid the groundwork for a possible sale or spin-off of its declining cable TV assets in December by announcing a separation from its streaming and studio operations.