The reversal of global media consolidation is continuing with Warner Bros. Discovery announced it would split into two publicly traded companies.
Warner Bros. said the tax-free separation of its Streaming & Studios and Global Networks businesses would enable each to maximise its potential.
Streaming & Studios will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max and their film and television libraries.
Global Networks will include premier entertainment, sports and news television brands including CNN, TNT Sports in the United States, and Discovery, free-to-air channels in Europe, and digital products such as the Discovery+ streaming service and Bleacher Report.
This transaction, which is expected to be completed by mid-2026, unwinds the merger in 2022 of WarnerMedia and Discovery and reflects differing outlooks for the growing streaming and studios business and the fading networks business.
Chief Executive Officer David Zaslav will lead the streaming and studios unit, while Chief Financial Officer Gunnar Wiedenfels will head the networks unit.
"By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharp focus and strategic flexibility they need to compete most effectively in today's evolving media landscape," Zaslav said in a media release.
The company, founded in 1923, said the planned separation would unlock value for shareholders and create opportunities for new businesses to thrive by:
- Equipping each to be faster and more aggressive in pursuing opportunities that strengthen their competitive positions
- Forming world-class management teams focused on creating greater strategic flexibility and focus so that each business can invest in and pursue its operational and financial goals, and
- Enabling each company to be more agile and attract a shareholder base aligned with its growth prospects and financial profiles.
In November 2024 Comcast (NASDAQ: CMCSA) announced plans to spin off its television networks, including CNBC and MSNBC, into a separate company.
Warner Bros. Discovery (NASDAQ: WBD) shares closed 29 cents lower at US$9.53 (A$14.62) on Monday (Tuesday AEST), capitalising the company at $23.58 billion.
