Official press release from Warner Bros. Discovery or major financial news outlets

Warner Bros. Discovery Restructures into Global Linear Networks and Streaming & Studios, Shares Surge 15% Ahead of Mid-2025 Implementation

Dec 12, 2024, 03:28 PM

Warner Bros. Discovery has announced a significant restructuring of its corporate framework, creating two distinct divisions: Global Linear Networks and Streaming & Studios. This move aims to separate its declining cable TV business from its growing streaming and production operations, potentially paving the way for a sale or spinoff of the cable unit as consumer preferences shift towards streaming services. The restructuring is reminiscent of similar strategies employed by NBC Universal and is expected to enhance strategic flexibility for Warner Bros. Discovery. Following the announcement, the company's shares surged by over 15% in after-hours trading, reflecting positive investor sentiment regarding the new direction. The restructuring is anticipated to take effect by mid-2025, with the company positioning itself for future deal-making opportunities in the evolving media landscape.