4 hours ago
2
Warner Bros Discovery, the mega media conglomerate behind Hollywood movie studios and a string of TV networks, from HBO to CNN, has announced plans to break into two companies in a bid to revive its fortunes.
The group will separate Warner Bros, the DC Studios comic book franchise, its Max streaming service and HBO, the premium cable network behind hit series including The Last Of Us, Game of Thrones and Succession, away from its other linear TV networks, which include CNN, Discovery and free-to-air channels across Europe.
The move, announced just three years after Warner Media and Discovery merged to create a vast media giant which executives claimed was fit for the digital age, effectively unravels much of that deal – separating premium Warner Bros movies and series from Discovery’s reality TV and factual shows, like Naked And Afraid: Last One Standing.
Shares in Warner Bros Discovery, which have halved since the two firms first combined, rose 9% during early trading on Wall Street on Monday.
Warner Bros Discovery’s CEO, David Zaslav, who spent years building Discovery before the 2022 merger, is set to lead the other business, overseeing Warner Bros and HBO. Gunnar Wiedenfels, chief financial officer of Warner Bros Discovery, will serve as CEO of the company built around traditional TV networks, like CNN and Discovery.
The traditional TV business, known as Global Networks, will own “up to” 20% of the studios and streaming business led by Zaslav, which it will use to pay down its debt. Warner Bros Discovery had a total debt pile of some $37bn as of March, troubling some on Wall Street.
In a statement, Zaslav hailed the “next chapter” of the group’s history. “By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” he said.
Just last week, Zaslav faced an investor rebellion over his 2024 compensation package of more than $50m, when some 59% of Warner Bros Discovery shareholders voted against the package in a symbolic vote.
after newsletter promotion
The planned split, which needs to be signed off by Warner Bros Discovery’s board of directors, is expected to be completed by the middle of 2026.
Wiedenfels claimed the separation would “invigorate each company”, adding that his Global Networks business, which include CNN and Discovery, “will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow”.
