Warner Bros. Discovery (WBD) has unveiled a significant restructuring plan aimed at dividing its business into linear and streaming units, a move designed to facilitate future consolidation. This announcement comes as the company strives to enhance its operational efficiency.
Following the news, WBD shares surged approximately 15% in early trading on Thursday. The new structure will create a global linear networks division encompassing a range of channels, including CNN, TBS, TNT, HGTV, and the Food Network. Meanwhile, a separate streaming and studios unit will oversee WBD's film studios and its streaming platform, Max.
Notably, HBO, a long-standing titan in television, will be integrated into the streaming unit. This strategic shift follows Comcast's recent decision to spin out its own cable networks, highlighting a broader trend in the industry.
David Zaslav, CEO of WBD, stated, "We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world's most compelling stories." The restructuring is expected to be finalized by mid-2025, marking a pivotal moment for the company.