Warner Bros. Discovery Split: TNT Sports U.S. To Be Part of ‘Global Networks’, TNT Sports International Moves to ‘Streaming & Studios’

Global Networks will also include TNT sports digital assets like B/R, House of Highlights, Eurosport.com, and Golf Digest

Warner Bros. Discovery today announced plans to split the company into two publicly traded entities, separating its studios and streaming business from its global cable TV networks. TNT Sports (in the U.S.) and Bleacher Report (B/R) will sit under ‘Global Networks’ along with other cable assets like CNN and TNT /TBS, while ‘Streaming and Studios’ will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, and the film and television libraries. HBO Max’s international sports offering and TNT Sports International (U.K. and Ireland) will also sit under the Streaming & Studios banner.

In addition to TNT Sports’ U.S. operation, Global Networks will include U.S. general and lifestyle entertainment networks (including TNT, TBS, Turner Classic Movies, OWN, HGTV, Food Network, TLC, Discovery Channel, Animal Planet, Cartoon Network and Adult Swim), CNN (including CNN International and CNN’s forthcoming subscription streaming service), free-to-air channels across Europe, and the Discovery+ streaming service. The company will also include TNT sports digital assets like B/R, House of Highlights, Eurosport.com, and Golf Digest.

TNT Sports’ U.S. rights portfolio will serve as a major driver for the Global Networks, with a current slate that includes MLB, NCAA Division I Men’s Basketball Championship, NHL, U.S. Soccer, Unrivaled, NASCAR, Roland-Garros, NCAA Big 12 Football and Men’s Basketball, and NCAA Big East Men’s and Women’s Basketball.

David Zaslav, President and CEO of Warner Bros. Discovery, will serve as President and CEO of Streaming & Studios. Gunnar Wiedenfels, CFO of Warner Bros. Discovery, will serve as President and CEO of Global Networks. Both will continue in their present roles at WBD until the separation. The tax-free transaction is expected to be completed by mid-2026, subject to closing and other conditions.

“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 in the company’s announcement. “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.”

“This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value,” said Wiedenfels. “At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.”

“We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders,” added Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. “This announcement reflects the Board’s ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.”

WBD believes the planned separation will “unlock value for shareholders as well as create opportunities for both new businesses to thrive,” according to Monday’s statement. The hope is that the split will equip each company to be faster and more aggressive in pursuing opportunities that strengthen their competitive positions, as well as enable each company to be more agile and attract a shareholder base aligned with its growth prospects and financial profiles. In addition, each company’s management teams will be focused on creating greater strategic flexibility and focus so that each business can invest in and pursue its operational and financial goals.

In addition to the TV, film, and streaming assets listed above, Streaming & Studios will also have Warner Bros. Games, Tours, Retail and Experiences, as well as studio production facilities in Burbank and Leavesden under its umbrella. The company will focus on continuing to scale HBO Max, which is now in 77 markets with important new market launches planned for 2026, and prioritze the operating principles that have put the Studios on a path back to their target of at least $3 billion in annual adjusted EBITDA.

According to WBD, Global Networks assets currently reach 1.1 billion unique viewers in 68 languages across 200 countries and territories and has  robust margins and free cash flow conversion. Global Networks palns pursue international growth opportunities, elevating its live content offerings in sports and news, and growing digital extensions of its strong network brands, such as Discovery+, B/R, and CNN’s new streaming offering.

Warner Bros. Discovery intends to separate the businesses in a tax-free manner for U.S. federal income tax purposes. The companies plan to implement arm’s length transition services and commercial agreements post-separation to facilitate the transition and maintain continued operational efficiencies. Each company will have well-capitalized structures to support their businesses. In a separate press release today, Warner Bros. Discovery announced the commencement of tender offers and related consent solicitations across its existing capital structure to enhance its debt portfolio, which will be funded by a committed bridge facility of $17.5 billion provided by J.P. Morgan. The bridge facility is expected to be refinanced prior to the separation. Both companies will have a clear path to de-leveraging with significant cash flow and strong liquidity through cash and revolver availability. In addition, Global Networks will hold up to a 20% retained stake in Streaming & Studios that it will plan to monetize in a tax-efficient manner to enhance the de-leveraging of its balance sheet.

The separation is expected to be completed by mid-2026, subject to closing and other conditions, including final approval by the Warner Bros. Discovery Board, receipt of tax opinions and/or a private letter ruling from the Internal Revenue Service with respect to the tax-free nature of the transaction for U.S. federal income tax purposes, and market conditions. J.P. Morgan and Evercore are serving as financial advisors to Warner Bros. Discovery and Kirkland & Ellis LLP is serving as legal counsel.