Warner Bros to split its cable TV and streaming businesses
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The news: Warner Brothers Discovery announced on Monday that it will separate its streaming and studios business and its TV networks operations into two publicly traded entities by the middle of 2026.
The context: A statement released by the company on Monday says that the Streaming and Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their film and television libraries. Current president and CEO of Warner Bros Discovery, David Zaslav will serve as president and CEO of the Streaming & Studios business.
Global Networks will include premier 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 profitable Discovery+ streaming service and Bleacher Report. Gunnar Wiedenfels, CFO of Warner Bros. Discovery, will serve as President and CEO of Global Networks.
The media giant said that the planned separation will unlock value for shareholders and create opportunities, breaking up the group that was formed three years ago from the merger of Warner Media and Discovery.
Warner Bros Discovery first revealed its plans to split in mid-2024.
An internal memo from Zaslav to Warner Bros staff seen by the WSJ earlier on Monday said: "While the work since that merger has been challenging at times, ultimately, we have succeeded in strengthening each element of our business. 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.”
The numbers: In a separate release on Monday, Warner Bros said that it will raise a bridge loan of USD17.5 billion ($26.95 billion) with JP Morgan, which it expects to be recapitalised before the split. Global Networks will also hold up to a 20% stake in Streaming & Studios which it will monetise in efforts to reduce debt.
The sources: Warner Bros press release, WSJ X post, FT
