The division of Warner Bros. Discovery into two publicly traded entities has been announced. The shift, which is anticipated to be finished in 2026, was announced by David Zaslav, president and CEO of WBD.
The Streaming & Studios organization, led by Zaslav, will be formed by Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. In the meanwhile, WBD’s CFO Gunnar Wiedenfels will lead the Global Networks firm, which will comprise WBD’s linear and digital holdings, such as CNN, TBS, TNT, its sports media rights, Discovery, free-to-air stations throughout Europe, Discovery+ streaming service, and Bleacher Report.
Later on, the new company’s names will be revealed.
READ MORE: David Zaslav, The CEO Of Warner Bros. Discovery, Will Earn Around $52 Million In 2024, A 4% Increase
“We are giving these iconic brands the increased focus and strategic adaptability they require to compete most successfully in today’s changing media landscape by operating as two separate and optimized companies in the future,” Zaslav said in a statement.
Wiedenfels stated during a Monday investor conference call that the Global Networks company will inherit the majority of WBD’s current debt and hold a 20% share in the Studios & Streaming company.
In 2024, the corporation announced an internal corporate restructure that would create two separate business activities along these lines.
Comcast’s strategy for its media businesses is comparable to WBD’s action. Most of the corporation’s cable networks, including MSNBC and CNBC, are about to be spun off into a new company called Versant.
In particular, this will be CNN’s most recent corporate reorganization in its forty-five-year history. TimeWarner purchased Turner Broadcasting, its original parent company, in 1996. AOL acquired TimeWarner in a well-known and tumultuous merger in 2001.
Following AT&T’s acquisition of TimeWarner, WarnerMedia was established in 2018. Additionally, WarnerMedia and Discovery merged to form Warner Bros. Discovery in April 2022.
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