Warner Bros Discovery to separate studios and streaming in two-way split

The exterior of the Warner Bros. Discovery Atlanta campus in Atlanta, Georgia

Warner Bros Discovery said on Monday it would split into two companies, separating its studios and streaming business from its fading cable television networks as the parent of HBO and CNN looks to compete better in the streaming era.

Its CEO David Zaslav will lead the streaming and studios business after the breakup, while CFO Gunnar Wiedenfels will head the Global Networks unit that includes the cable 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.

The media industry is going through what some executives have called a "general disruption" as millions of subscribers abandon the once-lucrative cable TV for streaming.

That has piled pressure on companies to consistently produce hit studio content and boost profitability in their streaming businesses.

WBD had laid the groundwork for a possible sale or spin-off of its declining cable TV assets in December by announcing a separation from its streaming and studio operations.

The split will align the company with Comcast, which is spinning off most of its cable TV networks such as MSNBC and CNBC.