Warner Bros Discovery splits streaming from cable TV
Warner Bros Discovery said it would split into two publicly traded companies, separating its studios and streaming business from its fading cable television networks as the parent of HBO and CNN looks to compete better in the streaming era.
The break-up, announced on Monday, is the latest sign of the great unravelling of decades of media consolidation that have created global conglomerates spanning content creation, distribution, and in some cases telecommunications.
It unwinds WarnerMedia and Discovery's 2022 merger, giving the streaming and studios business more room to scale without being weighed down by the declining networks unit.
The new streaming and studios company will include Warner Bros, DC Studios, and HBO Max — the crown jewels of Warner Bros Discovery's entertainment library.
The networks unit, which will hold up to a 20% stake in its counterpart, will house CNN, TNT Sports and Bleacher Report.
CEO David Zaslav will lead the streaming and studios unit after the break-up, while chief financial officer Gunnar Wiedenfels will head the networks unit. The separation will be structured as a tax-free transaction and is expected to be completed by mid-2026.
"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," Mr Zaslav said.
Company's debt
Majority of the company's debt would be held by the global networks company. Warner Bros Discovery had a gross debt of $38bn (€33.3bn) as of March.
Shares of Warner Bros Discovery rose 8% in pre-market trading, but the stock remains down nearly 60% since the merger — hurt by cable subscriber loss, tough streaming competition, and investors' concerns over the debt-laden company's direction.
Last week, about 59% of Warner Bros Discovery shareholders voted against executive pay packages, including Zaslav's $51.9m 2024 compensation, at the annual shareholder meeting.
"[Warner Bros Discovery] is a hotchpotch of businesses, which has failed to win over the market. [With the split] Warner Bros has a better chance to gain broader investor interest and focus management on fewer things," said AJ Bell analyst Dan Coatsworth.
Warner Bros Discovery had laid the groundwork for a sale or spin-off of its declining cable TV assets in December, announcing a separation from its streaming and studio operations.
The split comes as Warner Bros Discovery tries to position its streaming service as a premium destination with titles such as The Last of Us after initially betting that a blend of HBO dramas and Discovery's lifestyle content would broaden its appeal.
It revived the HBO Max branding last month to aid the global expansion of its streamer that had about 122m subscribers as of March and expects its subscriber base to exceed 150m by the end of 2026.
That would still trail Netflix's more than 300m subscribers and the combined 181m subscribers of Disney+ and Hulu.
Reuters
Read More
New HBO Harry Potter series casts Hermione, Ron and Harry
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RTÉ News
43 minutes ago
- RTÉ News
Katherine Parkinson joins cast for new Harry Potter TV series
The IT Crowd star Katherine Parkinson has joined the cast of the new Harry Potter TV series. She will join the HBO TV show of the popular fantasy novel series to play Molly Weasley, the mother of Ron Weasley. Parkinson also starred in the hit Disney+ series Rivals, for which she received a supporting actress Bafta TV nomination for her role as Lizzie Vereker. Joining the cast alongside Parkinson is actor and musician Johnny Flynn, who is best known for playing Mr Knightley in the 2020 film Emma. The 42-year-old will portray antagonist Lucius Malfoy, while The Diary Of A Teenage Girl star Bel Powley will play Petunia Dursley, the aunt of Harry Potter who takes him in and forces him to live under the stairs following his parents' death. Each season of the show will be a faithful adaptation of the Harry Potter books, from author and executive producer JK Rowling. This follows from the popular film adaptations that starred Daniel Radcliffe, Emma Watson and Rupert Grint as the protagonists. Actor and comedian Daniel Rigby will also join the cast to play Petunia's husband, Vernon Dursley, while The Crown 's Bertie Carvel will portray Cornelius Fudge. School bully Draco Malfoy, who was played in the films by Tom Felton, who is set to reprise the role in the Harry Potter And The Cursed Child play on Broadway, will be portrayed by Lox Pratt. Hogwarts students will include newcomers Leo Earley as Seamus Finnigan, Alessia Leoni as Parvati Patil and Sienna Moosah as Lavender Brown. The young stars cast to play Harry, Hermione Granger and Ron Weasley were announced recently. Dominic McLaughlin will take the part of Harry, Arabella Stanton will play Hermione and Alastair Stout is cast as Ron. British actor Paapa Essiedu and US star John Lithgow were also confirmed as Professor Severus Snape and Hogwarts headmaster Professor Albus Dumbledore, respectively. The cast also includes Welsh comedian and actor Paul Whitehouse as the magic-less Hogwarts caretaker Argus Filch and Hot Fuzz actor Nick Frost as the friendly groundskeeper Rubeus Hagrid.
The Irish Sun
6 hours ago
- The Irish Sun
80s movie star who played iconic villains makes rare appearance 23yrs after child abuse scandal ended glittering career
DISGRACED movie star Jeffrey Jones made a rare public appearance more than two decades after a child abuse scandal ended his glittering career. Jeffrey, who played the roles of iconic villains in the 80s, appeared on a panel with his former co-stars at The Hollywood Show. Advertisement 4 Actor Jeffrey Jones attends The Hollywood Show held at The Westin Hotel LAX on July 28, 2018 Credit: Getty 4 Jones attends HBO's Telefilm Premiere of Deadwood at Grauman's Chinese Theater on March 3, 2005 in Hollywood Credit: Getty 4 Jones (C) exits Los Angeles Superior Court with his lawyers, Leonard B. Levine (R) and Jeffrey Brody (L) after making his first court appearance Credit: Getty The actor, who has been away from the public eye for years following his arrest in 2002, interacted with the audience and shared bits about his personal life. Jeffrey made a rare appearance to discuss the iconic 1986 film Ferris Bueller's Day Off, in which he played the role of high school principal Ed Rooney. Chatting about the cult classic, the actor revealed he does not live in Los Angeles anymore. He told the audience: "I moved to live in the desert. Advertisement "I didn't want to be in LA anymore, but I got my family here, and so little kids get old fast. I'm driving back and forth." The actor added: "I'm getting a place now in LA I've given up because I can't keep going back and forth from Burbank to the desert." On the panel, he also discussed what it was like to work with legendary director John Hughes, who passed away in 2009. The Beetlejuice actor said: "He entertained, and was certainly collaborative. Advertisement Most read in Celebrity Exclusive "He wanted what he wanted. Usually it was a fight because there was time and budget to consider, and John didn't really pay much attention to that.' In November 2002, Jeffrey was arrested and charged with possession of sick child abuse images and soliciting a minor for nude photos, according to a report by The actor later pleaded no contest to soliciting a minor while prosecutors dropped possession of sick child abuse images. A court sentenced Jeffrey to five years of probation, one year of psychological counselling and two years of drug and alcohol abuse counselling. Advertisement He was also ordered to register as a sex offender for the rest of his life and prohibited from possessing any pornography. Jeffrey said at the time: "I am sorry that this incident was allowed to occur. "Such an event has never happened before and it will never happen again." In 2004, Jeffrey was arrested again after he failed to register himself as a sex offender when he moved to Florida and again in 2010 when he came back to LA. Advertisement He pleaded guilty and was sentenced to 250 hours of community service, in addition to three years of probation. Read more on the Irish Sun Last year, Jeffrey's character in Beetlejuice was killed off as part of the movie's long-awaited sequel Beetlejuice Beetlejuice. 4 Jones speaks to the media after his court appearance in Los Angeles Superior Court on November 21, 2002 Credit: Getty Advertisement
Irish Examiner
7 hours ago
- Irish Examiner
Warner Bros Discovery splits streaming from cable TV
Warner Bros Discovery said it would split into two publicly traded companies, separating its studios and streaming business from its fading cable television networks as the parent of HBO and CNN looks to compete better in the streaming era. The break-up, announced on Monday, is the latest sign of the great unravelling of decades of media consolidation that have created global conglomerates spanning content creation, distribution, and in some cases telecommunications. It unwinds WarnerMedia and Discovery's 2022 merger, giving the streaming and studios business more room to scale without being weighed down by the declining networks unit. The new streaming and studios company will include Warner Bros, DC Studios, and HBO Max — the crown jewels of Warner Bros Discovery's entertainment library. The networks unit, which will hold up to a 20% stake in its counterpart, will house CNN, TNT Sports and Bleacher Report. CEO David Zaslav will lead the streaming and studios unit after the break-up, while chief financial officer Gunnar Wiedenfels will head the networks unit. The separation will be structured as a tax-free transaction and is expected to be completed by mid-2026. "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," Mr Zaslav said. Company's debt Majority of the company's debt would be held by the global networks company. Warner Bros Discovery had a gross debt of $38bn (€33.3bn) as of March. Shares of Warner Bros Discovery rose 8% in pre-market trading, but the stock remains down nearly 60% since the merger — hurt by cable subscriber loss, tough streaming competition, and investors' concerns over the debt-laden company's direction. Last week, about 59% of Warner Bros Discovery shareholders voted against executive pay packages, including Zaslav's $51.9m 2024 compensation, at the annual shareholder meeting. "[Warner Bros Discovery] is a hotchpotch of businesses, which has failed to win over the market. [With the split] Warner Bros has a better chance to gain broader investor interest and focus management on fewer things," said AJ Bell analyst Dan Coatsworth. Warner Bros Discovery had laid the groundwork for a sale or spin-off of its declining cable TV assets in December, announcing a separation from its streaming and studio operations. The split comes as Warner Bros Discovery tries to position its streaming service as a premium destination with titles such as The Last of Us after initially betting that a blend of HBO dramas and Discovery's lifestyle content would broaden its appeal. It revived the HBO Max branding last month to aid the global expansion of its streamer that had about 122m subscribers as of March and expects its subscriber base to exceed 150m by the end of 2026. That would still trail Netflix's more than 300m subscribers and the combined 181m subscribers of Disney+ and Hulu. Reuters Read More New HBO Harry Potter series casts Hermione, Ron and Harry
