Just like anyone living with the same roommates for 3+ years, Warner Bros. Discovery is ready for separation. The entertainment behemoth said yesterday that it’ll slice itself in two, largely undoing the 2022 merger between Warner Bros. and Discovery that created it.
Here’s how it’ll be divided:
- Warner’s TV channels (including CNN, TNT, and TBS), as well as Discovery+ and Bleacher Report, will live within a newly created entity called Global Networks.
- Meanwhile, its film studios and streaming services (including HBO Max), will become part of Streaming & Studios, which will be helmed by current CEO David Zaslav.
Why the split?
Warner’s leadership claims that the move will allow the two companies—which will remain somewhat entwined operationally and financially—to focus on their core businesses and give them more dealmaking opportunities.
But some observers believe Warner might be looking to sell Global Networks as cable TV slowly goes the way of faxes in the streaming era. Warner downgraded the value of its TV networks by $9.1 billion last year, while HBO magnetized bingewatchers with premier content like White Lotus and The Pitt.
Plus, the split is reversing the marriage between the prestige of Warner Bros. offerings and Discovery’s reality shows, which many investors objected to.
It’s not the first TV-streaming divorce. Comcast-owned NBCUniversal recently began siloing its cable channels, including CNBC and MSNBC, into a new company called Versant.—SK