Warner Bros. Discovery, grappling with declines in its overall business, said Monday it planned to divide the company into two publicly-traded entities, one devoted to streaming and content production and one devoted to traditional television.

Warner Bros. Discovery CEO David Zaslav will remain as the leader of the streaming-focused entity, while Gunnar Wiedenfels, the company’s CFO who has become known for finding new ways to cut old costs, will lead the TV company. The separation is expected to be completed by mid-2026, subject to closing and other conditions, and the bulk of the current company’s debt — nearly $38 billion –will be assigned to the TV entity.

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“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 in a statement.

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The company is emulating a strategy recently put into place by rival Comcast. That conglomerate is breaking up NBCUniversal, with plans to place the bulk of its cable networks in a new publicly-traded spinoff called Versant while keeping its broadcast and streaming assets under the better-known entity, NBC.

SEE ALSO: WBD Split: Breakdown of Which Businesses Will End Up in Each Company

Warner has had to contend with many obstacles since being formed by the combination of AT&T’s WarnerMedia — the company once known as Time Warner — and the former Discovery Communications, Under Zaslav, Warner has fiddled with streaming strategies and deprived top cable networks of TNT and TBS of the original content they need to flourish. Warner recently lost long-held rights to televise NBA games, a contract that gave its networks a major sporting franchise that drew large crowds on the regular. And it has written down the value of its cable properties.

Warner has recently appeared to find some rhythm. The Max service has developed solid audiences for programs including “The Pitt” and “White Lotus,” and the company has recently articulated a strategy of targeting audiences interested in premium content, rather than a broader crowd. And Warner has struck new distribution deals with cable and satellite companies that call for what are seen internally as favorable terms, despite the loss of the NBA.

The streaming company will encompass the Warner TV and movie studios, HBO and HBO Max and a games and experiences division. The company will focus on building out the HBO Max streaming service and investing in programming. Meanwhile, the TV company will include Warner’s TV networks around the world along with specific digital brands tied to the TV entities, including Discovery+, Bleacher Report and CNN’s new streaming products.

Warner’s move is likely to spur new speculation about potential consolidation in the media sector. Part of the strategy behind Comcast’s Versant is its ability to do deals. Paramount Global, owner of CBS, is also under financial pressure and may have to consider new rounds of cost cutting if it cannot consummate a deal it has in place to be acquired by Skydance Media.

During an investor call Monday, executives suggested the two companies might continue to be aligned. Ad sales may represent both sides of the split, executives said, and sports, while being placed with the TV company, will likely continue to stream on HBO Max for the foreseeable future, though those plans could change as the two companies plot their own strategies in the future. “The U.S. sports rights will reside at the global networks, and its management team will determine how best to monetize the streaming and digital rights over time,” Wiedenfels said.