Latest news with #GlobalNetworks
Time of India
an hour ago
- Business
- Time of India
Warner Bros Discovery to split into two companies
Warner Bros . Discovery (WBD) announced plans to separate the company, in a tax-free transaction, into two distinct publicly traded companies. This strategic move aims to enable each new entity to maximise its potential and sharpen its focus within the dynamic media landscape , said the company in an official statement. The separation will create—Streaming & Studios which will comprise Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO , HBO Max, and their legendary film and television libraries. David Zaslav , current President and CEO of Warner Bros. Discovery, will lead Streaming & Studios as its President and CEO. While Global Networks , the entity will include premier entertainment, sports, and news television brands around the world, such as CNN, TNT Sports in the U.S., Discovery, top free-to-air channels across Europe, and digital products like the profitable Discovery+ streaming service and Bleacher Report (B/R). Gunnar Wiedenfels , current CFO of Warner Bros. Discovery, will serve as President and CEO of Global Networks. Both Zaslav and Wiedenfels will continue in their current roles at WBD until the separation is finalized, according to the press statement. "The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It's a treasured legacy we will proudly continue in this next chapter of our celebrated history,' said Zaslav. '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.' Gunnar Wiedenfels added, "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. At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.' Samuel A. Di Piazza, Jr., chair of the Warner Bros. Discovery Board of Directors, underscored the benefits for shareholders, stating, "We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders. This announcement reflects the Board's ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.' In a separate press release today, Warner Bros. Discovery announced the commencement of tender offers and related consent solicitations across its existing capital structure to enhance its debt portfolio. This will be funded by a committed bridge facility of $17.5 billion provided by J.P. Morgan, which is expected to be refinanced prior to the separation. Both companies will have a clear path to de-leveraging with significant cash flow and strong liquidity through cash and revolver availability. Additionally, Global Networks will hold up to a 20% retained stake in Streaming & Studios that it plans to monetize in a tax-efficient manner to enhance the de-leveraging of its balance sheet. The separation is expected to be completed by mid-2026.
Yahoo
3 hours ago
- Business
- Yahoo
Warner Bros. Breakup Sparks Wall Street Buzz--Streaming vs Cable in a $35B Power Play
Warner Bros. Discovery (NASDAQ:WBD) is breaking itself apart. In a bold pivot, the company announced it will separate into two independent businesses: one housing its fast-growing streaming and studio assets, the other holding its traditional cable networks like CNN, TNT, and TBS. CFO Gunnar Wiedenfels will lead the new Global Networks division, while CEO David Zaslav continues to run the Streaming and Studios unit. Global Networks will retain a 20% stake in the streaming business and use cash flow to chip away at WBD's heavy debt load. The move, expected to finalize by mid-2026, aims to unlock value, streamline strategy, and let each unit attract the right kind of investors. Warning! GuruFocus has detected 4 Warning Signs with WBD. The strategy here isn't just about structureit's about survival and upside. Warner Bros. Discovery is still carrying the weight of its $35 billion debt from the 2022 WarnerMedia-Discovery merger, just as cable TV keeps bleeding subscribers and ad dollars. This new setup could better align growth paths: Streaming focuses on content and innovation, while Networks leans into cash flow and debt reduction. WBD also secured a $17.5 billion bridge loan from JPMorgan, giving it breathing room to execute. Shares popped 13% on the news before pulling back, suggesting the market sees deal potentialeven if execution remains a work in progress. This isn't just a corporate shuffleit's a signal. Legacy media giants are waking up to the reality that bundling old and new under one roof may be holding them back. Comcast's recent NBCUniversal split hints at the same thinking. With Warner Bros. now unbundled, expect fresh deal speculation on both sides of the split. Whether it's M&A, asset sales, or capital partnerships, both businesses are being set up to move fast. And in a media landscape still feeling its way through disruption, that optionality could be worth a lot. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 hours ago
- Business
- Bloomberg
Warner Bros. to Split Into Streaming, Cable TV Companies
Warner Bros. Discovery is splitting into two independent companies: Global Networks and Streaming and Studios. Global Networks will include entertainment, sports, and cable television brands such as CNN, TNT, and TBS, and will hold a 20% stake in Streaming and Studios. The separation is expected to be completed by mid-2026, allowing each company to pursue deals and investment opportunities on their own. Bloomberg's Geetha Ranganathan reports. (Source: Bloomberg)
Miami Herald
5 hours ago
- Business
- Miami Herald
Warner Bros. Discovery to divide into two companies
June 9 (UPI) -- Warner Bros. Discovery announced Monday it will separate into two publicly traded companies by sometime in 2026. "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," said the company's President and CEO David Zaslavin a press release. Once the separation is complete, Zaslav will serve as President and CEO of Warner Bros. TV and movie group, plus DC Studios, HBO, and HBO Max in what is being called "The Streaming & Studios" company in the statement. A group to be known as "Global Networks" will include CNN, TNT Sports in the United States and Discovery, as well as Discovery-Plus and Bleacher Report, and will be led by Gunnar Wiedenfels, the current CFO of Warner Bros. Discovery who will serve its President and CEO. "This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles," said Wiedenfels. "At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow." The news follows the December 2024 announcement by WBD that it would undertake a restructuring plan to break up its corporate structure into two distinct operating divisions that were to be called "Streaming & Studios" and "Global Linear Networks." As of 10:51 a.m. Monday, Warner Bros Discovery shares were up 7.59% on the Nasdaq composite. Copyright 2025 UPI News Corporation. All Rights Reserved.
New Indian Express
5 hours ago
- Business
- New Indian Express
Warner Bros. Discovery to split into two companies, dividing cable, streaming services
NEW YORK: Warner Bros. Discovery will split into two public companies by next year, calving off cable operations from its streaming service as the number of people "cutting the cord" brings with it a sustained upheaval in the entertainment industry. Warner Bros. Discovery said Monday 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. The Global Networks 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. 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. 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. "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 Monday.
