Warner Bros. Discovery splits: Cable, streaming services to be divided; decision to be finalised by 2026
The restructuring will create two distinct entities: Streaming & Studios and Global Networks.
The Streaming & Studios will house Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, and their extensive film and television libraries.
Global Networks will comprise CNN, TNT Sports in the US, Discovery Channel, a range of major free-to-air European broadcasters, and digital brands such as Discovery+ and Bleacher Report.
Following the announcement on Monday, shares of Warner Bros. Discovery surged more than 9% in pre-market trading.
Warner Bros. chief executive David Zaslav will be leading the Streaming & Studios company, while the firm's current chief financial officer, Gunnar Wiedenfels, will take the reins at Global Networks.
Both officials will continue in their present roles until the split is finalised.
'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, quoted by AP.
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'This evolution isn't a departure from our strategy — to deploy Max globally, optimize our global networks and return our Studios to industry leadership — it's about unlocking the full potential of two strong businesses,' Zaslav said in an internal memo, cited by CNN.
'Each has a distinct focus, a clear mission, and the scale to succeed on its own terms.'
The decision to break up Warner Bros. Discovery comes just three years after the much-celebrated merger of Discovery and the former Time Warner. The announcement was widely anticipated, as the company has spent the past six months reshaping itself in preparation for a split.
The company said the separation is expected to be completed by the middle of next year, after receiving approval from the Warner Bros. Discovery board.
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