Latest news with #Streaming&Studios
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.
Yahoo
5 hours ago
- Business
- Yahoo
Warner Bros. Discovery to split into two media companies
-- Warner Bros. Discovery (NASDAQ: NASDAQ:WBD) shares paused trading on Monday pending a significant announcement. The company revealed plans to separate into two leading media corporations. The division will result in two distinct entities: Streaming & Studios, and Global Networks. The separation is intended to boost the potential of each business by focusing on their respective strengths. Streaming & Studios will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. This division aims to expand HBO Max, which is slated to enter new markets by 2026, and reach a minimum of $3 billion in yearly adjusted EBITDA. Global Networks will house global entertainment, sports, and news television networks like CNN and TNT Sports in the U.S., along with digital products such as Discovery+ and Bleacher Report. This segment currently reaches over 1.1 billion unique viewers in 200 countries and territories and is known for its high margins and strong free cash flow conversion. David Zaslav will continue as President and CEO of Streaming & Studios, and Gunnar Wiedenfels will become President and CEO of Global Networks. Both will retain their current roles at WBD until the separation is complete. The restructuring is designed to give each company the strategic flexibility needed to compete in the fast-changing media landscape. The Warner Bros. Discovery Board, led by Samuel A. Di Piazza, Jr., believes this transaction will increase shareholder value and is part of their commitment to realizing the full value of the company's assets. Both companies will be well-funded, with Warner Bros. Discovery having initiated tender offers to enhance its debt portfolio, supported by a $17.5 billion bridge facility from J.P. Morgan. Global Networks will retain up to a 20% stake in Streaming & Studios, which it plans to monetize to improve its balance sheet. The separation is expected to be completed by mid-2026, subject to approval by the Warner Bros. Discovery Board, tax rulings, and market conditions. After the announcement, shares rose over 10%. Related articles Warner Bros. Discovery to split into two media companies AppLovin would be more valuable without its 1P games, Morgan Stanley argues Morgan Stanley downgrades Lululemon on weak US growth outlook 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
LeMonde
6 hours ago
- Business
- LeMonde
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.
Yahoo
6 hours ago
- Business
- Yahoo
'Majority' of Warner Bros. Discovery's $37 Billion in Debt Will Be Spun Off With TV Networks, Its CEO Says
'It's safe to assume that the majority' of Warner Bros. Discovery's roughly $37 billion in debt load will exist with the spun off Global Networks, the new company's new president and CEO Gunnar Wiedenfels said on Monday. 'A not-insignificant portion' will remain with Streaming & Studios, Wiedenfels said, which will remain under the eye of current WBD president and CEO David Zaslav. 'It's too early to talk about a target capital structure. We haven't made final decisions yet, and you know, there's a lot we need to work through between now and when this when this deal closes,' Wiedendfels told media analysts on a conference call. 'A couple of things can be said, though. Number one, it's safe to assume that the majority of the debt is going to live with global networks and a smaller portion — but a not-insignificant portion — on Streaming & Studios as well.' More from The Hollywood Reporter Ted Sarandos' 'Studio' Appearance Is a Wink - And a Flex Warner Bros. Discovery Lays Off Staffers Across Cable Channels 'Dirty Jobs' Host Mike Rowe Sues Discovery Over Denying Streaming Royalties At the end of March, Warner Bros. Discovery had gross debt of $38.0 billion, which is comprised of 'total debt' ($37.4 billion) and financial leases ($535 million). The 2022 merger of WarnerMedia (owned by AT&T) and Discovery, Inc. created more than $50 billion of debt. Earlier on Monday, June 9, Warner Bros. Discovery announced a split that most of the industry saw coming. There will be two independently-operated, publicly-traded companies: Streaming & Studios and Global Networks. Those will be renamed at some point (and probably 'Warner Bros.' and 'Discovery' — again). It is a very similar move to what NBCUniversal recently did to form Versant. Disney has also toyed with the idea. Wiedenfels, currently the WBD chief financial officer and Zaslav's longterm right-hand man, expects his coming company, Global Networks, to 'continue to see strong cash generation.' Though cable TV is dying, it still generates cash flow — especially CNN, which heads out with Wiedenfels. Both Wiedenfels and Zaslav will continue in their present roles at WBD until the separation, which is expected to close in mid-2026. Zaslav's Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, as well as their legendary film and television libraries. The second business, Global Networks, will include entertainment, sports and news television brands around the world as CNN, TNT Sports in the U.S., and Discovery, free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R). In other words, Zaslav gets the cool, creative stuff; Streaming & Studios has all of the prestige and most of the future. Wiedenfels will be in charge of much of what presently makes reliable money, but he also inherits all of the downside based on industry trends. And oh yeah, most of that debt. 'Three years ago, the very foundation of how, when, and where audiences engaged with content was undergoing fundamental change,' Zaslav wrote in a memo to staff, obtained by The Hollywood Reporter, in reference to the 2022 combination of WarnerMedia and Discovery. 'As both organizations contemplated their futures, one truth became clear: to successfully adapt, transform, and lead in the entertainment industry of tomorrow, we needed to come together — to draw on each other's strengths.' Not that it was always easy. 'While the work since that merger has been challenging at times, ultimately, we have succeeded in strengthening each element of our business,' Zaslav said in the memo. 'By bringing together the Discovery and Turner networks, we have created a leader in live and unscripted television, with a truly global footprint operating at industry-leading margins. We've transformed our direct-to-consumer offering, as HBO Max is now one of the world's few global and meaningfully profitable streaming services. And by fusing creative brilliance with operational excellence, we have made strong progress in returning our film and television studios to industry leadership.' Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire
Yahoo
6 hours ago
- Business
- Yahoo
Warner Bros. Discovery to Split Into Two: Streaming and Studios, Global Networks
Hollywood conglomerate Warner Bros. Discovery on Monday made it official, unveiling plans to separate the company, in a tax-free transaction, into two publicly traded companies, 'enabling each to maximize its potential.' The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their legendary film and television libraries. The second business, Global Networks, will include such entertainment, sports and news television brands around the world as CNN, TNT Sports in the U.S., and Discovery, free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R). David Zaslav, president and CEO of Warner Bros. Discovery, will serve as president and CEO of Streaming & Studios. Gunnar Wiedenfels, CFO of Warner Bros. Discovery, will serve as president and CEO of Global Networks. Both will continue in their present roles at WBD until the separation. More from The Hollywood Reporter Netflix Inks Creative Partnership With Ekta Kapoor's Balaji Telefilms in India Sony Future Filmmakers Awards Recognize Emerging Global Talent How Angel Studios Is Spreading the Gospel of "Faith-Friendly" Cinema The split is expected to be completed by mid-2026, 'subject to closing and other conditions, including final approval by the Warner Bros. Discovery board, receipt of tax opinions and/or a private letter ruling from the Internal Revenue Service with respect to the tax-free nature of the transaction for U.S. federal income tax purposes, and market conditions,' the conglomerate said. '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,' Zaslav said in a statement. 'It's a treasured legacy we will proudly continue in this next chapter of our celebrated history.' He added: '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.' His CFO highlighted that the separation would 'invigorate each company by enabling them to leverage their strengths and specific financial profiles.' Continued Wiedenfels: '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.' WBD top executives will discuss the planned separation during a Monday morning conference call with Wall Street analysts. 'Three years ago, the very foundation of how, when, and where audiences engaged with content was undergoing fundamental change,' Zaslav highlighted in a staff memo ahead of the call, obtained by The Hollywood Reporter, in reference to the 2022 combination of WarnerMedia and Discovery. 'As both organizations contemplated their futures, one truth became clear: to successfully adapt, transform, and lead in the entertainment industry of tomorrow, we needed to come together — to draw on each other's strengths.' Zaslav acknowledged that the combination wasn't always smooth sailing. 'While the work since that merger has been challenging at times, ultimately, we have succeeded in strengthening each element of our business,' he said in the memo. 'By bringing together the Discovery and Turner networks, we have created a leader in live and unscripted television, with a truly global footprint operating at industry-leading margins. We've transformed our direct-to-consumer offering, as HBO Max is now one of the world's few global and meaningfully profitable streaming services. And by fusing creative brilliance with operational excellence, we have made strong progress in returning our film and television studios to industry leadership.' Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire 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
