Warner Bros. Discovery to split into two companies

Update: Warner Bros. Discovery confirmed in an investor call on Monday that TNT Sports properties will remain on the Max streaming service following the split. This piece has been updated with the new information.

After months of preparation, Warner Bros. Discovery has opted to split into two separate companies.

According to Brian Steinberg of Variety, Warner Bros. Discovery, the parent company in charge of TNT Sports and the Max streaming service, will split its company in two: one streaming-focused entity and another that houses the company’s legacy media assets such as its cable networks. Warner Bros. Discovery CEO David Zaslav will lead the new streaming-focused entity, while CFO Gunnar Widenfels will helm the legacy assets.

“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 in a statement, per Variety.

Last month, CNBC’s David Faber reported that Warner Bros. Discovery was “moving towards” a split of its linear television and digital assets. In December of last year, the company moved to internally restructure its assets, dividing its linear networks from its streaming and studios divisions. Just a couple months ago, the company hired bankers to explore a spinoff.

Warner Bros. Discovery would not be the first media conglomerate to opt for a split. In the coming months, Comcast will make its spinoff official when it launches Versant, a new company that will house the majority of NBC’s cable assets.

With Warner Bros. Discovery going a similar route, it appears that sports-focused channels like TNT, TBS, and truTV will eventually fall outside of the corporate umbrella. However, according to an investor call held on Monday, the company will continue to offer its sports properties on its Max streaming service following the split. It is unclear whether that will apply to other cable networks like CNN, Discovery, and Food Network, as Discovery+ is set to be housed with the linear assets.

The Wall Street Journal reports that Bleacher Report, the sports-focused digital publication, will follow the TNT Sports entities as part of the split off.

So far, any timeline for an eventual split is unclear.