In this article, Warner Bros. Discovery announced a restructuring plan on Thursday to divide its business into linear and streaming units, a move aimed at potentially simplifying future consolidation. The company’s shares rose by 15% on Thursday.
The new global linear networks division will encompass networks specializing in news, sports, scripted and unscripted programming such as CNN, TBS, TNT, HGTV, and the Food Network. A separate streaming and studios unit will include Warner Bros. Discovery’s film studios and the streaming platform Max.
HBO, a long-standing TV giant, will be placed under the streaming unit, as per a source familiar with the situation. This development follows Comcast’s recent announcement to separate its cable networks, which include CNBC, MSNBC, E!, Syfy, Golf Channel, USA, and Oxygen.
Warner Bros. Discovery CEO David Zaslav 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 the middle of next year.
Disclosure: Comcast is the parent company of CNBC.
— CNBC’s Alex Sherman contributed to this report.
