Warner Bros. Discovery Restructuring Plan Unveiled, Shares Surge 15%
Warner Bros. Discovery announced a major restructuring plan on Thursday, segmenting its business into linear and streaming units in a move aimed at simplifying future consolidation. The company’s shares jumped 15% following the news.
As part of the plan, Warner Bros. Discovery is creating a global linear networks division, which will house its networks of news, sports, scripted and unscripted programming, including CNN, TBS, TNT, HGTV and the Food Network.
Meanwhile, a streaming and studios unit will be established to house Warner Bros. Discovery’s film studios and streaming platform Max. Longtime TV powerhouse HBO will also be slotted under this unit, according to sources familiar with the matter.
The restructuring update comes on the heels of Comcast’s announcement to spin out its cable networks, including CNBC, MSNBC, E!, Syfy, Golf Channel, USA and Oxygen.
Warner Bros. Discovery CEO David Zaslav said in a statement, “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 company expects to complete the restructuring by the middle of next year.