Warner Bros Discovery, the owner of CNN and HBO Max, has revealed plans to divide into two separate companies by the middle of next year. The media giant will separate its studio and streaming business from its traditional cable TV networks. This decision comes as streaming services continue to gain popularity worldwide, while cable TV has experienced a decline in viewership.

HBO Max, known for hit shows like Succession, The White Lotus, and The Last of Us, will be part of the new Streaming & Studios business. This division will also include the company's film department and will be overseen by Mr. Zaslav. The other company, Global Networks, will encompass brands such as CNN, Discovery, and TNT Sports, and will be led by Gunnar Wiedenfels, the chief financial officer of Warner Bros Discovery.

David Zaslav, president and chief executive of Warner Bros Discovery, stated, "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." This split follows the 2022 merger that brought Warner Bros Discovery into existence.

Despite the success of streaming services, cable TV channels like CNN have experienced a decline in viewership in recent years.