CNBC reports WBD could be headed for a split as company announces mixed Q1 results

Even as Warner Bros. Discovery announced mixed first-quarter financial results, a separate report emerged that the media giant has been moving closer to splitting in two, according to reporting by CNBC’s David Faber.

“What would that split look like? Well, most likely, or almost definitely, it’s the linear cable networks and then you have the studio coupled with Max,” Faber said.

Citing unnamed sources and “conversations,” Faber stopped short of saying he was aware of any formal talks about a spin-off but suggested he had been hearing rumblings of such a possibility from within the company.

The news came as WBD announced lower results from its movie studio and cable businesses as it framed streaming as a bright spot.

Its streaming numbers rose to 122.3 million, with 5.3 million new subscribers during the first quarter. Revenue was also up 8% to $2.7 billion. 

However, revenue from its linear networks division fell 7%, including a 12% hit to advertising dollars. Its film studio segment, meanwhile, saw lower-than-expected box office numbers. That revenue fell 18% to $2.31 billion, though it appears it may have better fortunes in its future with second-quarter and summer releases.

Overall revenue was down 10% to just shy of $9 billion, which was under analysts’ estimates of $9.6 billion. 

Faber also called attention to the fact that WBD broke out its Q1 2025 financials by division — and how that could be another signal that a split may be coming.

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“That is usually a tell, right?” he said.

While nothing is final, breaking WBD into two separate companies — one for streaming and film and the other for linear TV — would mirror Comcast’s move to spin-off most of its cable networks into a separate company, which was officially dubbed Versant earlier this week after being known by the placeholder name “SpinCo” for months.

Comcast’s situation is slightly different in that it owns the NBC broadcasting network, whereas WBD does not hold a similar property. 

What WBD does have, however, are some of the biggest names in cable TV history, including CNN, Discovery Channel, TNT and TBS. 

Once the Versant deal completes later in 2025, it will hold CNN rival MSNBC along with popular brands including CNBC, USA Network, E!, Oxygen, Golf Channel and Syfy. NBCU is holding into the Bravo cable network, however.

Warner Bros. Discovery was formed in 2022 when WarnerMedia, which had been spun off from AT&T, and Discovery Inc. merged. 

Prior to that deal, WarnerMedia had launched streamer HBO Max, leveraging the name of its iconic premium channel, though it was later renamed as simply “Max.”

The same year HBO Max launched, Discovery launched Discovery+, its own take on streaming that focused heavily on unscripted lifestyle, reality and informational programming. Discovery+ has largely been absorbed by Max, but is still sold separately with a more limited content selection.