Forget the official line. Warner Bros. Discovery isn’t just flirting with the idea of spinning off its cable networks—it’s laying the groundwork with the precision of a breakup that’s already happened behind closed doors. The Street’s acting surprised, but if you’ve been watching the structure, the financials, and the carefully worded earnings calls, you know this isn’t speculation. It’s staging.
Start with the reorg. Last year’s bifurcation of WBD into two silos—Streaming/Studios and Linear—wasn’t about “strategic flexibility.” It was a clean break disguised as corporate housekeeping. When you create standalone P&Ls, give each business its own reporting lane, and then suddenly start singing the praises of “optionality,” you’re not exploring possibilities—you’re drawing the map to a split.
This quarter’s numbers do nothing to slow the momentum. Streaming delivered 5.3 million new subs, a revenue bump to $2.7 billion, and a rare spark of EBITDA positivity at $339 million. Max is finally behaving like the engine Zaslav’s been promising since the merger hangover started to clear.
Meanwhile, the cable side continues its graceful decline. Revenue off 7%. EBITDA down 15%. Still profitable, but clearly less so every quarter. That’s not a growth business. That’s ballast. And in a media economy where investors reward focus and punish complexity, you don’t drag ballast into the future—you cut it loose.
And let’s not kid ourselves about the emotional calculus here. Zaslav spent the last decade building that cable empire. But the Discovery thesis—that scale in non-scripted would future-proof the company—collapsed the second cord-cutting accelerated past escape velocity. Now it’s about salvaging what can be monetized and ditching what can’t. NBCU’s Versant play gave WBD the air cover. Wall Street’s 5% stock bump after the CNBC’s David Faber reported that a spinoff of Warners’ cable channels is imminent.
Even the language on the call was telling. Zaslav says, “We can move quickly if we decide to change.” Chief Slashing Officer Gunnar Wiedenfels is already prepping for a “more turbulent environment.” They’re soft-launching the narrative so they can hard-launch the transaction later. Probably after Q2. Maybe even as the Upfronts wind down. But the choreography is already locked.
The film studio’s under pressure—Mickey 17 barely cleared its marketing spend, and leadership’s been on edge since the slate thinned out post-Dune: Part Two. But the second quarter’s riding the high of Minecraft and Sinners, and that’s buying them air cover while the real pivot plays out behind the curtain.
Zaslav’s not chasing growth across the board anymore. He’s consolidating. Tightening. Making the tough calls, AT&T wouldn’t. Letting go of the NBA rights wasn’t a miss—it was the clearest signal yet that WBD knows where it can win and where it can’t. The focus now is on IP they own, margins they can defend, and platforms they don’t have to keep subsidizing.
Skip’s Take
This isn’t about turning the ship. It’s about cutting it in half and letting the leaky part drift.
Zaslav’s not waiting for permission—he’s waiting for the right quarter. The spin-off is happening, the only open question is how much debt lands on each side and how fast they can sell Wall Street on the purity of the new Max+HBO+WB play.
What happens to CNN, HGTV, and TLC? They’ll be someone else’s problem soon—maybe under a new name, maybe with some private equity lipstick, maybe spun out with just enough shine to pretend it’s a strategic asset. It won’t matter.
WBD’s future is IP-powered, subscriber-fueled, and ad-supported when it needs to be. Legacy cable isn’t just non-core. It’s already been written off internally. What you’re seeing now is the slow roll of a decision that’s already been made.
