Warner Bros. Discovery announced plans Thursday to separate its linear TV from studios and streaming companies to create “two distinct operating divisions,” a strategy that will give WBD more room to pursue sales and acquisition maneuvers
Warner Bros. Discovery’s new corporate structure aims to bolster its “strategic flexibility and create potential opportunities to unlock additional shareholder value,” David Zaslav said in a release. The CEO hopes to complete the reorganization by mid-2025, with two new divisions to be called Global Linear Networks and Streaming & Studios; the latter will house HBO despite its linear TV roots.
“Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value,” Warner Bros. Discovery CEO David Zaslav said in a statement.
The reorganization was revealed after Comcast said it planned to spin off its NBCUniversal cable networks into a publicly traded company. That offshoot is seen as a potential partner for WBD’s new Global Linear Networks division, whose creation is sure to spark off mergers and acquisitions talk at large.
WBD shares jumped 12% in early trading on the news that’s been expected on Wall Street for months. Analysts believe the move to isolate the financial drag of linear networks, which have experienced a rapid decline in ad revenue and viewership.
