Why Warner Bros. Discovery announced major split into two companies and what this means: 10 points
Warner Brothers Discovery announced Monday that it will split into two companies, creating two independent firms. HBO, and
HBO Max
, as well as Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, will become part of the streaming and studios company, Warner Bros. said Monday.
The cable company will include CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the Discovery+ streaming service and Bleacher Report.
Warner Bros Discovery splits: 10 points you need to know
-Warner Bros. Discovery, the powerhouse behind HBO, CNN, and a vast entertainment empire, has announced splitting into two separate public companies by mid-2025, reports CNN. The decision is aimed at focusing on streaming/studios and global networks respectively, amid the ongoing shift from cable to streaming.
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-Warner Bros. Discovery CEO
David Zaslav
will become serve as CEO of the company that for right now is called Streaming & Studios. Gunnar Wiedenfels, chief financial officer of
Warner Bros. Discovery
, will be CEO of the cable-focused entity, for now known as Global Networks.
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-Without NBA TV rights, the appeal of WBD's cable networks has declined considerably, even though they continue to generate reliable cash flow for the company. The separation is expected to be finalized by mid-next year, reports Axios.
-This move echoes Comcast's previous decision to spin off its cable assets into a separate company, Versant, highlighting a growing trend of media giants restructuring in response to the challenges posed by cord-cutting.
-'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.
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-Warner Bros. Discovery announced in December that it was undergoing a restructuring, with plans to establish itself as the parent company of two key divisions: Global Linear Networks and Streaming & Studios. This move was widely viewed as a precursor to the separation officially revealed on Monday, reports AP.
-The split comes on the heels of WBD's earlier restructuring strategy to divide its linear networks from its streaming division. It also aligns with CEO David Zaslav's ongoing efforts to cut down the company's debt—a move that has drawn some internal criticism.
-Warner Bros. Discovery was created just three years ago when AT&T spun off WarnerMedia and it was merged with Discovery Communications in a $43 billion deal. It had also explored mergers with cable companies like Paramount Global, but talks never materialized.
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-The cable industry has been under assault for years from streaming services like Disney, Netflix, Amazon and Warner Bros. own HBO Max. The industry is also being pressured by internet plans offered by mobile phone companies, as per AP.
-So-called 'cord cutting' has cost the industry millions of customers and left them searching for ways to successfully compete. It still needs final approval from the Warner Bros. Discovery board.
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Time of India
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