Warner Bros Discovery, the media conglomerate known for Hollywood studios and TV networks like HBO and CNN, is dividing into two separate companies to improve its financial situation.

The split will separate Warner Bros, DC Studios, Max streaming service, and HBO from other linear TV networks such as CNN and Discovery. This move comes just three years after the merger of Warner Media and Discovery, undoing much of that deal by separating premium content from reality TV and factual shows.

Shares of Warner Bros Discovery rose by 9% in early trading on Wall Street following the announcement.

CEO David Zaslav will lead the new business focused on Warner Bros and HBO, while Gunnar Wiedenfels will become the CEO of the company centered around traditional TV networks like CNN and Discovery.

The traditional TV business, known as Global Networks, will own a portion of the studios and streaming business to reduce debt, which stood at $37 billion as of March.

Zaslav expressed optimism about the future, stating that the split will empower the iconic brands to compete effectively in the evolving media landscape.

The split is expected to be finalized by mid-2026 pending approval from the board of directors.

Wiedenfels believes that the separation will benefit both companies, with Global Networks focusing on innovative ways to engage viewers and maximize network assets.