WB Games Moves Under New Company as Warner Bros. Discovery Splits in Two

Image: WB Games, Batman

In a major restructuring move, Warner Bros. Discovery has announced plans to split into two publicly traded companies.

As part of this transformation, the WB Games division will now officially fall under the umbrella of a newly formed entity focused on streaming and studio operations.

What’s Happening with WB Discovery?

The post-merger Warner Bros. Discovery empire, which was formed in 2022 by the merger of WarnerMedia and Discovery Inc., will now be divided into two companies:

1. Streaming & Studios Company

   • Led by current CEO David Zaslav

   • Includes:

     • Warner Bros. Television

     • Warner Bros. Motion Picture Group

     • DC Studios

     • HBO & HBO Max

     • Warner Bros. Games

   • Also includes studio production assets, theme park experiences, and the lucrative WB content library.

   • This company is expected to take on a smaller portion of WBD’s $37 billion debt, positioning it as a leaner operation with growth potential in streaming and content creation.

2. Global Networks Company

   • To be led by WBD CFO Gunnar Wiedenfels

   • Includes CNN, Discovery, TNT Sports, Discovery+, and international broadcast operations.

   • It will retain most of WBD’s debt, along with a 20% stake in the Streaming & Studios company to aid in debt repayment.

What This Means for WB Games

WB Games, the video game division behind hits like Hogwarts Legacy and Mortal Kombat 1, is now firmly housed under the Streaming & Studios company. While this move might initially seem like a reorganization on paper, it could have big implications for the future of Warner’s gaming endeavors.

WB Games has recently faced turbulence. Despite the billion-dollar success of Hogwarts Legacy, the division reported a $384 million loss due to underperforming titles like Gotham Knights, Multiversus, and the critically panned Suicide Squad: Kill the Justice League. These setbacks forced WBD to adopt a “fewer, bigger” strategy, narrowing its focus to just four core franchises:

• Mortal Kombat

• Harry Potter

• DC (Batman)

• Game of Thrones

The pivot also included closing Monolith Productions, which was working on the Wonder Woman game, and the departure of longtime WB Interactive president David Haddad earlier this year.

Despite multiple rumors about its selling game business, David Zaslav reaffirmed his commitment to growing the games business in previous investor call, stating: “We have four games that are really powerful… We’re going to go away from trying to launch 10, 12, 15, 20 different games.” Zaslav believes that with focus and discipline, WB Games can recover and eventually hit an annual revenue goal of $3 billion.

That's remember, James Gunn, the Head of the DC Universe, discussed plans for a cohesive DC Universe (DCU) where films, TV shows, animation, and video games are interconnected, a vision he began outlining in 2022. However, Gunn later clarified that not every DC game would be canon to the DCU, allowing some flexibility. This will now become more possible under the new company.

What Comes Next?

While no immediate operational changes for WB Games were announced, the separation of WBD could offer the gaming division more flexibility and investment—especially now that it's part of a content-focused company alongside HBO and Warner Bros. Studios.

The corporate split is expected to finalize by mid-2026, pending regulatory and board approval. Until then, both companies will operate under current management, with transition plans in place.