Warner Bros. Discovery announces splitting into two companies
Warner Bros. Discovery announced, on Monday, June 9, that it will split into two public companies by next year, carving off its cable operations from its streaming service as the number of people "cutting the cord" brings with it a sustained upheaval in the entertainment industry. The entertainment giant will break itself into two publicly traded companies in "Streaming & Studios" and "Global Networks." Warner Bros. Discovery said that Streaming & Studios will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. Meanwhile, the Global Networks company will include CNN, TNT Sports in the US, and Discovery, top free-to-air channels across Europe, and digital products such as the Discovery+ streaming service and Bleacher Report.
The Warner Bros. Discovery split is expected to be completed by mid-2026, the company said. It still needs final approval from the Warner Bros. Discovery board. In response to the announcement, the company's shares jumped more than 7% before the market opened.
Warner Bros. Discovery CEO David Zaslav will serve as CEO of Streaming & Studios. Gunnar Wiedenfels, chief financial officer of Warner Bros. Discovery, will serve as CEO of Global Networks. Both will continue in their current roles until the separation.
Advance warning of the split
"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.
Warner Bros. Discovery said, in December, that it was implementing a restructuring plan that would have Warner Bros. Discovery serve as the parent company for two operating divisions, Global Linear Networks and Streaming & Studios. The announcement was taken as a preview of the separation of divisions that was announced on Monday.
Just days ago, Warner Bros. Discovery shareholders voted to reject the 2024 pay packages of some executives, including Zaslav's pay package of more than $51 million. The vote is symbolic, as it is nonbinding.
The cable industry has been under pressure
The cable industry has been under assault for years from streaming services like Disney, Netflix, Amazon and HBO Max, as well as internet plans offered by mobile phone companies. Comcast, which is of nearly equal size to Charter, spun off many of its cable television networks in November, as consumers increasingly swap out their cable TV subscriptions for streaming platforms.
Last month, Charter Communications offered to acquire Cox Communications, a $34.5 billion merger that would combine two of the top three cable companies in the US. So-called "cord-cutting" has cost the industry millions of customers and left them searching for ways to successfully compete.
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Warner Brothers Discovery will split company to build streaming
The entertainment giant will break itself into two publicly traded companies: one covering "Streaming & Studios" and the other "Global Networks." The shift, designed to enable each venture to "maximize its potential," is expected to be completed by mid-2026, the company said. The move, which reallocates assets such as HBO Max and CNN, is the latest reflection of how streaming is remaking a media business in which Warner Brothers Discovery and other legacy players traditionally garnered considerable revenues from "bundled" cable products that many consumers are now eschewing in favor of a la carte streaming purchases. The "Streaming & Studios" company will include the libraries of HBO and Warner Brothers, studio production facilities in California and Britain, and tours and experiences. The venture will focus on growing HBO Max, now in 77 markets, said the company's press release. The "Global Networks" company will house Discovery, as well as CNN and TNT Sports, which are known for coverage of live events. Assets in this group currently reach 1.1 billion viewers across 200 countries and territories. The number of paid US cable subscriptions stood at 66 million in 2024, down 37 percent from 2010, according to industry research firm IBIS World. Legacy media companies have struggled with the economics of shifting flagship offerings to streaming in a profitable manner. CNN tried in March 2022 to launch a subscription streaming service before quickly pulling the plug on the venture. However, Warner Brothers has said it will revive the effort this fall. The split allows Warner Brothers Discovery's streaming offerings "to boost content while not being weighed down by the slower-growth legacy cable business," said "The cable channels still throw off decent good cash flow, but are struggling with high debt and declining subscribers as more consumers cut the cord." Media industry reinvention Warner Brothers Discovery CEO David Zaslav will serve as chief of streaming, while Warner Brothers Discovery Chief Financial Officer Gunnar Wiedenfels will lead global networks. "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. Earlier this month, shareholders voted down Zaslav's pay package in a reflection of investor discontent with the company's performance. The vote was non-binding. In a conference call with analysts, Zaslav said he was committed to the global buildout of HBO Max, describing it as the "highest quality streaming service in the world" thanks to acclaimed titles such as "Succession," "The White Lotus" and "The Sopranos." Upcoming launches include Britain, Ireland, Germany and Italy, executives said on a conference call with analysts. Warner Brothers Discovery's plan to split itself up comes after Comcast in November announced it would spin off cable television channels, including CNBC and MSNBC, into a new company. Disney has so far established streaming platforms such as Disney+, while discussing a new streaming service for its ESPN sports platform. The company has not spun off its legacy channels. Warner Brothers Discovery said the transaction was subject to closing conditions, including a ruling from US tax authorities that the restructuring was tax-free. Shares of Warner Brothers Discovery were down 2.2 percent in afternoon trading after surging in the morning.
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Warner Bros. Discovery announces splitting into two companies
Warner Bros. Discovery announced, on Monday, June 9, that it will split into two public companies by next year, carving off its cable operations from its streaming service as the number of people "cutting the cord" brings with it a sustained upheaval in the entertainment industry. The entertainment giant will break itself into two publicly traded companies in "Streaming & Studios" and "Global Networks." Warner Bros. Discovery said that Streaming & Studios will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. Meanwhile, the Global Networks company will include CNN, TNT Sports in the US, and Discovery, top free-to-air channels across Europe, and digital products such as the Discovery+ streaming service and Bleacher Report. The Warner Bros. Discovery split is expected to be completed by mid-2026, the company said. It still needs final approval from the Warner Bros. Discovery board. In response to the announcement, the company's shares jumped more than 7% before the market opened. Warner Bros. Discovery CEO David Zaslav will serve as CEO of Streaming & Studios. Gunnar Wiedenfels, chief financial officer of Warner Bros. Discovery, will serve as CEO of Global Networks. Both will continue in their current roles until the separation. Advance warning of the split "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. Warner Bros. Discovery said, in December, that it was implementing a restructuring plan that would have Warner Bros. Discovery serve as the parent company for two operating divisions, Global Linear Networks and Streaming & Studios. The announcement was taken as a preview of the separation of divisions that was announced on Monday. Just days ago, Warner Bros. Discovery shareholders voted to reject the 2024 pay packages of some executives, including Zaslav's pay package of more than $51 million. The vote is symbolic, as it is nonbinding. The cable industry has been under pressure The cable industry has been under assault for years from streaming services like Disney, Netflix, Amazon and HBO Max, as well as internet plans offered by mobile phone companies. Comcast, which is of nearly equal size to Charter, spun off many of its cable television networks in November, as consumers increasingly swap out their cable TV subscriptions for streaming platforms. Last month, Charter Communications offered to acquire Cox Communications, a $34.5 billion merger that would combine two of the top three cable companies in the US. So-called "cord-cutting" has cost the industry millions of customers and left them searching for ways to successfully compete.
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L'Oréal acquires a majority stake in British skincare brand Medik8
L'Oréal has acquired a majority stake in the UK's Medik8 as it seeks to expand its position in the skincare market, the French beauty giant confirmed on Monday. As part of the deal, private equity firm Inflexion will remain a minority shareholder, and the current management committee will also stay in their roles. The cost of the stake is officially undisclosed, although the Financial Times reported last week that the potential deal was worth around €1bn. L'Oréal's share price was roughly unchanged on the news. 'We are delighted to welcome Medik8 to the L'Oréal family,' said Cyril Chapuy, President of L'Oréal LUXE. 'As a premium skincare range, with high levels of proven efficacy at an accessible price point, Medik8 perfectly complements our existing skincare portfolio,' he added. L'Oréal has been seeking to capitalise on the boom in science-driven skincare, partly driven by social media influencers. Brands already under its 'Dermatological Beauty Division' include La Roche-Posay, Cerave, Vichy, Skinceuticals, and Skinbetter Science. This unit brought in over €7bn in revenue in 2024, representing an almost 10% year-on-year rise, making it L'Oréal's fastest-growing division. Seeking to expand its portfolio, L'Oréal bought soap maker Aesop in 2023, and Korean beauty brand Dr.G in December. Last year, L'Oréal also acquired a 10% stake in skincare firm Galderma, as well as acquiring the beauty licence for Miu Miu. At the time of the Galderma deal, the French firm said it was 'increasingly investing in a more holistic approach, spanning the entire beauty routine' — thereby 'anticipating and intercepting the signs of skin ageing'. Medik8, founded in 2009, specialises in anti-ageing treatments and was bought by UK-based private equity firm Inflexion in 2021. Media conglomerate Warner Bros. Discovery announced on Monday that it would split into two public companies by next year, carving off its TV network operations from its streaming service. The move to spin off one company devoted to streaming and a second devoted to traditional television comes as the company struggles with a decline in overall business. The organisation said the new Streaming & Studios group would include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max as well as their film and television libraries. The Global Networks company will include CNN, TNT Sports, Discovery+ and other digital products. Shares in the company jumped more than 9% ahead of the market opening. Current Warner Bros. Discovery CEO David Zaslav will continue as the head of Streaming & Studios, while the company's chief financial officer Gunnar Wiedenfels will become CEO of Global Networks. Both executives will continue in their current positions until the company separates. 'By operating as two distinct and optimised 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. The US media giant said the split would unlock value for shareholders and create opportunities for both businesses. The split still needs final approval from the company's board but is expected to be completed by the middle of next year. Warner Bros. Discovery was created only three years ago after a merger between Warner Media and Discovery.
