Warner Bros. Discovery Restructures to Unlock Shareholder Value by Mid-2025

Dec 12, 2024, 01:55 PM

Warner Bros. Discovery Inc. has announced a significant restructuring, creating two distinct operating divisions: Global Linear Networks and Streaming & Studios. This new corporate structure, expected to be in place by mid-2025, aims to enhance strategic flexibility and unlock additional shareholder value. The Global Linear Networks division will manage the company's cable TV assets, including CNN, TBS, and TNT, focusing on maximizing profitability and free cash flow. Meanwhile, the Streaming & Studios division, led by CEO David Zaslav, will concentrate on growth through its streaming platforms like Max and its film and entertainment studios. The restructuring is part of a broader strategy to adapt to the evolving media landscape, with the company expecting to complete the implementation by mid-2025. This move comes amidst speculation about potential mergers and acquisitions in the industry, especially as regulatory environments may become more favorable under the new administration.