Warner Bros. Discovery said it would split into two publicly traded companies, separating its studios and streaming business from its fading cable television networks as the parent company of HBO and CNN looks to improve competition in the streaming era.

Hollywood conglomerate Warner Bros. Discovery on Monday made it official, unveiling plans to separate the company, in a tax-free transaction, into two publicly traded companies, “enabling each to maximize its potential.”

NEW YORK (AP) — Warner Bros. Discovery will split into two public companies by next year, calving off cable operations from its streaming service as the number of people “cutting the cord” brings with it a sustained upheaval in the entertainment industry.