The David Zaslav-led conglom had signaled the move with an internal reorganization that grouped its businesses into Streaming & Studios and Global Networks.
Zaslav will lead Streaming & Studios while CFO Gunnar Wiedenfels takes on the President and CEO fo Global Networks role.
Global Networks, meanwhile, will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report (B/R).
Legacy media companies have been making similar moves of late.
Lionsgate’s split from Starz was confirmed last month while Comcast spun out a number of its cable networks into a new company, Versant.
Warner Bros. Officially, Discovery (WBD) will split into two businesses.
With an internal reorganization that divided its businesses into Streaming and Studios and Global Networks, the David Zaslav-led conglomerate had hinted at the change. earlier in the year. It was announced today, a little earlier than most anticipated, that the separation will actually become a split, similar to what Comcast is doing by spinning out its cable networks from NBCUniversal, in a seismic reconfiguration of the U.S. S. media sector.
CFO Gunnar Wiedenfels will serve as President and CEO of Global Networks, while Zaslav will oversee Streaming & Studios. Both will stay with WBD in their current positions until the separation, which is anticipated to be finalized in the middle of 2026.
“Countless people worldwide have been impacted by this great company’s cultural significance and the powerful stories it has brought to life for over a century. In this next chapter of our illustrious history, we will proudly carry on this cherished legacy,” Zaslav said in a statement. “By functioning as two separate and optimized businesses going forward, we are giving these recognizable brands the increased focus and strategic adaptability they require to best compete in the rapidly changing media landscape of today. “.”.
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Streaming & Studios, Zaslav’s new company, will include Warner Bros. Cinema, Warner Bros. the film and television libraries of Motion Picture Group, DC Studios, HBO, and HBO Max. Global Networks, on the other hand, will comprise top news, sports, and entertainment television networks worldwide, such as CNN and TNT Sports in the US. S. as well as Discovery, the leading free-to-air channels in Europe, and digital goods like Bleacher Report (B/R) and the lucrative streaming service Discovery+.
Major changes in the industry, such as the emergence of streaming and the unexpectedly rapid decline of linear television, have left investors perplexed and stock prices in a tailspin. Legacy media is reacting to these changes. Comcast has stated that it anticipates Versant, its cable spinoff, to launch by the end of the year. Cable network conglomerates like these two, which still generate a lot of money and revenue, are thought to have the potential to merge or be purchased by buyers like private equity firms who would control their decline. As a result, these splits are probably a sign of an upcoming media M&A period.
Starz and Lionsgate Studios recently parted ways. Recent actions by legacy media companies have been comparable. Last month, Comcast spun out several of its cable networks into a new business called Versant, and Lionsgate’s separation from Starz was officially announced.
Each business will benefit from this division by being able to capitalize on its unique financial characteristics and strengths. Additionally, it will enable each business to seek significant investment prospects and increase shareholder value,” Wiedenfels stated. In order to maximize our network assets and generate free cash flow, we at Global Networks will concentrate on finding new and creative ways to collaborate with distribution partners to add value for both linear and streaming viewers worldwide. “”.
“The Board feels this transaction is a great outcome for WBD shareholders, and we committed to shareholders to find the best strategy to realize the full value of our exciting portfolio of assets,” Samuel A. added. Di Piazza, Jr. chair of the board of WBD. This announcement demonstrates the Board’s continued pursuit of opportunities to increase shareholder value through evaluation and pursuit. “”.
Benefits that WBD stated will unlock value for shareholders and create opportunities for both new businesses to flourish include: empowering each to pursue opportunities that strengthen their competitive positions more quickly and aggressively; assembling top-tier management teams that are focused on fostering greater strategic flexibility and focus so that each business can invest in and pursue its operational and financial goals; and empowering each company to be more agile and draw in a shareholder base that is in line with its financial profiles and growth prospects.
WBD stated that it wants the split to be tax-free for the United States. S. federal income tax purposes and that the new businesses intend to use commercial agreements and arm’s length transition services after the split “to facilitate the transition and maintain continued operational efficiencies.”. “”.
This report was written with assistance from Jill Goldsmith.
