Official company press release or major financial news outlets

Warner Bros. Discovery Splits into Two Divisions, Stock Surges

Dec 12, 2024, 11:31 PM

Warner Bros. Discovery Inc., the parent company of HBO and CNN, has announced a significant corporate restructuring, splitting its operations into two distinct divisions: Global Linear Networks and Streaming and Studios. This move aims to maximize profitability and free cash flow from its television networks while fostering growth and capital return in its streaming and production studio businesses. The company plans to complete this reorganization by mid-2025. In response to this news, Warner Bros. Discovery's shares surged by over 15%, closing at $12.49, marking a year-to-date increase. The restructuring comes as the company seeks to adapt to the evolving media landscape and potentially explore strategic opportunities, including mergers or acquisitions. Additionally, Warner Bros. Discovery has sold its MotorTrend Group to Hearst Magazines, further streamlining its focus on core business areas. CEO David Zaslav stated that the new corporate structure better aligns the organization for flexibility in future strategic moves.