Official announcement from Warner Bros. Discovery or credible news outlets

Warner Bros. Discovery Restructures, Shares Surge 15% on Potential M&A Opportunities

Dec 12, 2024, 02:24 PM

Warner Bros. Discovery Inc. has announced a significant corporate restructuring, creating two distinct operating divisions: Global Linear Networks and Streaming & Studios. This strategic move aims to enhance the company's flexibility in an evolving media landscape and unlock potential shareholder value. The Global Linear Networks division will manage the company's traditional cable networks, including CNN, TBS, TNT, HGTV, and the Food Network, focusing on maximizing profitability and free cash flow. Meanwhile, the Streaming & Studios division will oversee the company's streaming platform Max, HBO, and its film studios, concentrating on growth and leveraging its extensive intellectual property portfolio. The restructuring is expected to be completed by mid-2025, with Warner Bros. Discovery shares surging 15% following the announcement. This new structure could facilitate future strategic opportunities, including potential mergers or acquisitions, as the media industry continues to shift towards digital platforms. The move follows Comcast's recent announcement to spin off its cable networks, highlighting a broader industry trend towards separating traditional TV from streaming and studio operations.