Warner Bros Discovery (WBD) has announced a major restructuring that will divide its business into two distinct units: Global Linear Networks and Streaming & Studios. The reorganisation is expected to be completed by mid-2025.
“Linear” refers to the traditional broadcasting model where viewers watch scheduled programming at specific times on a set channel.
The Global Linear Networks division will manage WBD’s cable TV operations, including channels like TNT and CNN. Meanwhile, the Streaming & Studios division will oversee platforms such as Max, as well as WBD’s film and TV production studios.
The company also indicated that its Board of Directors would undergo changes.
WBD CEO David Zaslav described the reorganisation as a move to create “potential future strategic opportunities”.
It’s not you, it’s me
The cable industry has faced declining viewership and advertising revenue as viewership migrates to on-demand streaming.
WBD is not the only media company making such a move. Comcast recently announced it would spin off its cable networks, and Disney CEO Bob Iger has also raised the possibility of spinning off Disney’s linear TV networks.
The restructuring follows a challenging period for WBD. Since the merger that formed Warner Bros Discovery in 2022, the company’s stock has struggled, losing around 50% of its value. In August, WBD took a US$9.1bn writedown on the value of its linear TV operations after losing rights to NBA games, which shifted to Amazon Prime Video. The deal had long been seen as a vital source of ad revenue and ratings for WBD’s TNT network.
Market reaction
Some see the move as preparation for eventual mergers or partnerships. Analysts at Bank of America suggested that the restructuring would allow WBD to separate its more lucrative streaming and studio assets from its struggling TV networks, potentially making the former a more attractive acquisition target.
News of the restructuring had an immediate impact on WBD’s stock, which rose as much as 16% on Thursday, reaching its highest level since late 2023. As at the time of writing, it’s trading 14.35% higher at $12.35.