Warner Bros. Discovery to Split Cable TV from Streaming by Mid-2025, Stock Surges

Dec 13, 2024, 12:30 AM

Warner Bros. Discovery Inc. has announced a major corporate restructuring, deciding to separate its cable TV business from its streaming and studio operations. This move comes as the company seeks to adapt to the ongoing trend of cord-cutting and the shift towards streaming services. The cable TV business, which includes networks like TNT, Animal Planet, and CNN, will be housed under a new unit named 'Global Linear Networks'. Conversely, the streaming platforms Max and Discovery+, along with film studios such as Warner Bros. Pictures and New Line Cinema, will form another division. This restructuring aims to provide more options for value creation in both divisions and potentially pave the way for a sale or spinoff of the cable TV operations by mid-2025. The decision has led to a significant rise in Warner Bros. Discovery's stock price, with shares increasing by over 15% to close at $12.49. The company's strategy aligns with industry trends where media companies are reevaluating their traditional television assets due to the growth of streaming services. Bank of America analyst Jessica Leaf Ehrlich has pointed out that Warner Bros. Discovery's cable TV assets could be a 'very logical partner' for Comcast's new spin-off.