Warner Bros. Discovery intends to separate its operations into two distinct publicly traded entities: one for Streaming and Production, and another for International Networks. This division is aimed at providing each sector with a clearer focus and greater freedom to pursue individual growth opportunities, as stated by the company.
Streaming & Studios to Focus on Film, TV, and HBO Max
The recently established media conglomerate, now known as Streaming & Studios, will encompass various divisions such as Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, Warner Bros. Games, and related studio operations. Following the completion of the separation, David Zaslav will assume leadership as the CEO of this combined entity.
The main focus for the company is to grow the recently renamed HBO Max, enter fresh territories, and achieve the goal of generating $3 billion in annual adjusted EBITDA. Meanwhile, Streaming & Studios will carry on creating cinematic content under its well-known labels like Warner Bros. and DC.
Global Networks to Handle TV, Sports, and News
The collection of networks encompasses the company’s entertainment, sports, and news channels, including CNN, TNT Sports, and Discovery, as well as digital platforms like Discovery+ and Bleacher Report. This division caters to over a billion viewers worldwide, broadcasting in 68 different languages.
Under the separation plans, Gunnar Wiedenfels, Warner Bros. Discovery’s Chief Financial Officer, will assume the role of CEO for the Global Networks sector. The company aims to channel resources into live content production, expand its digital footprint, and optimize cash flow from both robust linear and streaming platforms by capitalizing on their strengths.
Separation Timeline and Structure
According to the plan, Warner Bros. Discovery aims to finalize the split by mid-2026. This transaction is designed to be exempt from U.S. federal income tax. In the meantime, Global Networks might retain up to 20% ownership in Streaming & Studios. They intend to sell this stake at a later time to help manage their debt load.
The firm obtained a $17.5 billion short-term loan from J.P. Morgan to facilitate the transformation process. This temporary loan will be replaced by another financing option prior to the completion of the split.
Zaslav and Wiedenfels to Remain Until Transition
During the transition, both Zaslav and Wiedenfels will maintain their existing positions at Warner Bros. Discovery. Afterward, they’re expected to head their respective entities. The board and executive team are confident that this decision will enhance competitiveness within each division and make them more appealing to potential investors.
Next Steps
The agreement needs to be officially endorsed by the board, receive tax approval, and find itself in advantageous market circumstances. The legal and financial consultants involved are Kirkland & Ellis, J.P. Morgan, and Evercore. For further details, you can access a webcast for shareholders on the company’s investor website.
Zaslav’s official comments
In his words, “This remarkable company’s cultural influence and the captivating narratives it has shared for over a century have moved countless people globally. We are honored to uphold this valuable heritage as we embark on the next phase of our storied past,” stated Zaslav. “By separating into two streamlined companies, we aim to provide these iconic brands with the clear focus and strategic agility they require to thrive in today’s dynamic media industry.
Wiedenfels comments
Wiedenfels stated that the separation will energize each company by providing them the chance to capitalize on their unique strengths and financial characteristics. This move also opens up opportunities for each company to explore significant investments and boost shareholder value. At Global Networks, we are committed to discovering more creative methods of collaborating with distribution partners to generate value for viewers, whether linear or streaming, across the globe. Additionally, we aim to optimize our network assets and increase free cash flow.
Di Piazza, Jr. comments
Samuel A. Di Piazza, Jr., as chair of the Warner Bros. Discovery Board of Directors, stated that we have pledged to our shareholders to find the optimal approach for maximizing the worth of our captivating collection of assets. He further explained that this transaction represents an excellent result for WBD shareholders. This announcement underscores the Board’s continuous dedication to scrutinize and seize opportunities that boost shareholder value.
Read More
- Gold Rate Forecast
- Mobile MOBA Games Ranked 2025 – Options After the MLBB Ban
- Summer Game Fest 2025 schedule and streams: all event start times
- Apothecary Diaries Ch.81: Maomao vs Shenmei!
- ‘This One’s About You’: Sabrina Carpenter Seemingly Disses Ex-Boyfriend Barry Keoghan in New Song Manchild
- Resident Evil 9: Requiem Announced: Release Date, Trailer, and New Heroine Revealed
- Tom Cruise Bags Gold: Mission Impossible Star Lands Guinness World Record for Highest Burning Parachute Jumps
- Are Billie Eilish and Nat Wolff Dating? Duo Flames Romance Rumors With Sizzling Kiss in Italy
- Tom Hiddleston and Wife Zawe Ashton Announce Second Pregnancy, Know Couple’s Relationship Timeline
- Every Fish And Where To Find Them In Tainted Grail: The Fall Of Avalon
2025-06-09 21:32