Paramount: No plans to spinoff cable channels after Warner Bros. Discovery merger

At a time where spinning off cable channels is in vogue for some media conglomerates, that won’t be the case for Paramount after it purchases Warner Bros. Discovery.

During an investor call to discuss its pending merger with Warner Bros. Discovery, Paramount confirmed it had no plans to spinoff its growing cable portfolio.

Paramount: No plans to divest or spin off a package of cable networks at this time

— Brian Steinberg (@bristei) March 2, 2026

It was the expected outcome if Paramount won the bidding war for Warner Bros. Discovery. After all, Paramount wanted to buy the entirety of the company, whereas Netflix only wanted to purchase the movie studio and streaming business, leaving the cable assets to be spun out into a separate entity called Discovery Global.

Paramount believes that combining its cable assets with those owned by Warner Bros. Discovery can create “operational efficiencies,” particularly when it comes to sports. Adding the TNT Sports cable networks (TNT, TBS, truTV) gives Paramount the opportunity to better distribute its own live sports rights. Paramount has already indicated openness to placing UFC fights on TNT. One could imagine that UEFA Champions League matches could also make their way to cable. Similarly, some TNT Sports properties could be well-suited for the CBS broadcast network, like postseason MLB or NHL games.

It’s the opposite approach compared to a company like Comcast, which earlier this year officially spun out its cable networks into a new entity called Versant.

Within the last few weeks, there has been renewed speculation as to whether Disney will decide to spinoff ESPN under incoming CEO Josh D’Amaro. However, that possibility appears to be on the back burner for now.

The spinoff question is a valid one to ask any company still in the business of cable networks. Cord-cutting continues to be prevalent, even if there are some small signs that the rate of decline could be slowing. It makes sense that companies with an eye towards growth might want to cleave off their declining assets.

But Paramount is banking on the added scale and “operational efficiencies” of combining its cable assets with Warner Bros. Discovery as a viable path towards growth. We’ll see if that’s a realistic idea, or if Paramount might revisit its decision to hold onto its cable assets at some point down the line.