The owner of CNN and HBO Max, Warner Bros Discovery, says it will split into two companies by the middle of next year.

The US media giant plans to separate its studio and streaming business from its more traditional cable television networks.

The move comes as streaming services attract hundreds of millions of users around the world, but cable TV has seen audiences decline in recent years.

HBO Max has enjoyed success with shows including Succession, The White Lotus and The Last of Us - while channels like CNN have been losing viewers.

These hit shows will soon come under a new Streaming & Studios business, along with the company's film division and be headed by Mr Zaslav.

The other new company will be called Global Networks, with CNN, Discovery and TNT Sports amongst its brands. This business will be led by Warner Bros Discovery's chief financial officer, Gunnar Wiedenfels.

"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", said David Zaslav, Warner Bros Discovery president and chief executive.

The splitting of the media conglomerate follows the 2022 merger that created Warner Bros Discovery.

News of the split did little to improve Warner Bros Discovery's stock market performance. Shares were down nearly 3% in trading on Monday, with the stock down more than 10% this year.

Peter Jankovskis, an analyst at Arbor Financial Services, said the split would help investors get a better understanding of each new company's value.

"When you make the business less complicated, analysts can go in and do a better job of determining what the business is actually worth," he told the BBC.

Warner Bros Discovery's flagship news channel, CNN, has seen its ratings decline. It averaged 558,000 viewers during primetime hours in the first three months of this year, 6% lower than the same period in 2024.

In January, the network announced that it was laying off more than 200 employees as it looks to focus on its digital offerings.

The outlook is brighter for Warner Bros Discovery's streaming platforms, which ended the first quarter of this year with more than 122 million subscribers.

Monday's breakup announcement came after rival media giant Comcast announced last year that it would spin off its NBCUniversal cable television arm.

That breakup is currently underway, with channels such as MSNBC and CNBC being separated from Comcast's other brands, including its Peacock streaming service.

"It's a very competitive market right now, so many firms are trying to segregate out the streaming portion or the content portion of their businesses so that the remaining business can be valued separately", said Mr Jankovskis.