Warner Bros. Discovery (WBD) is to separate into two separate companies, splitting its studios and streaming business from its legacy television
Warner Bros. Discovery (WBD) is to separate into two separate companies, splitting its studios and streaming business from its legacy television networks.
A Streaming & Studios company will house Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. It will also include WBD’s production facilities in Burbank and Leavesden, and Warner Bros. Games, Tours, Retail and Experiences.
Meanwhile, a Global Networks company will include entertainment, sports and news television brands including CNN, TNT Sports in the US and Discovery, free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report.
David Zaslav, president and CEO of Warner Bros. Discovery, will become president and CEO of Streaming & Studios.
Gunnar Wiedenfels, CFO of Warner Bros. Discovery, is to become president and CEO of Global Networks.
Both Zaslav and Widenfels will continue in their current roles at WBD until the separation, which is expected to be completed by mid-2026.
WBD, like its studio rivals, has been under pressure from Wall Street amid industrywide challenges, including advertising weakness and cord-cutting, as investors look for a return on the costly transition from legacy linear TV networks to the streaming world. Its share price is down 60% since the merger of Warner Bros and Discovery was completed in 2022.
WBD laid the groundwork for a possible sale or spinoff of its dwindling TV assets in December 2024 when it reworked its corporate structure with a global linear TV division separate from its streaming and studios division.
Among other studios, Comcast is also spinning off most of its cable TV networks, such as MSNBC and CNBC.
Zaslav said: “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.”
“This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value,” said Wiedenfels.
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