Warner Bros. Discovery is to split into two to separate businesses in a move it says will “will unlock value for shareholders as well as create opportunities for both new businesses”.
One business, currently dubbed ‘the Streaming & Studios company’ will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, plus their film and television libraries.
Meanwhile ‘Global Networks’ will include many of the group’s key entertainment, sports and news television brands around the world including CNN, TNT Sports in the US, and Discovery, free-to-air channels across Europe, and digital products such as the Discovery+ streaming service and Bleacher Report.
Confirmation of the split comes just three years after the company was formed through the merger of WarnerMedia with Discovery.
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.
Zaslav 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.
“It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history.
“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.”
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, said: “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.”