The entertainment giant will break itself into two publicly traded companies in “Streaming & Studios” and “Global Networks”.

The shift, designed to enable each venture to “maximise its potential,” is expected to be completed by mid-2026, the company said.

The move, which reallocates assets such as HBO Max and CNN, is the latest reflection of how streaming is remaking a media business in which Warner Brothers Discovery and other legacy players traditionally garnered considerable revenues from “bundled” cable products that many consumers are now eschewing in favour of a la carte streaming purchases.

Streaming & Studios will include the libraries of HBO and Warner Brothers, studio production facilities in California and Britain and tours and experiences.

The venture will focus on growing HBO Max, now in 77 markets, said the company’s press release.

Global Networks will house Discovery, as well as CNN and TNT Sports, which are known for coverage of live events.

Assets in this group currently reach 1.1 billion viewers across 200 countries and territories.

Warner Brothers Discovery CEO David Zaslav will serve as chief of streaming, while Warner Brothers Discovery chief financial officer Gunnar Wiedenfels will lead global networks.

“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.

Shares of Warner Brothers Discovery surged 10.3% in morning trading.