Media giant Warner Bros realigns operations
In a strategic move to adapt to industry changes, Warner Bros Discovery has announced a major restructuring, separating its cable TV and streaming operations to prepare for future deals or potential sales.
Warner Bros Discovery has announced a significant restructuring of its operations, separating its traditional cable TV businesses like CNN and TNT from its growing streaming platforms such as Max and Discovery+. This move is aimed at adapting to the ongoing decline in cable subscriptions while positioning itself for potential sales or industry mergers.
The company’s shares rose over 15% following the announcement, with analysts noting that the split could make its linear TV networks more attractive to buyers. The restructuring mirrors similar efforts by media giants like Comcast, which recently launched a spin-off for its cable assets. Despite this, Warner Bros Discovery’s $40 billion debt remains a challenge in attracting buyers for its cable unit.
Streaming and studio operations, now placed in a separate division, continue to show promise, with growing returns on investment. CEO David Zaslav, known for orchestrating major deals, hinted at further industry consolidation in the near future. Warner Bros Discovery’s new structure is widely seen as a proactive measure to navigate a shifting media landscape.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.